The U.S. Securities and Exchange Commission has ended its years-long lawsuit against Ripple Labs. This decision marks a significant victory for Ripple and the entire cryptocurrency industry.
The SEC’s Case Against Ripple
The legal saga began in December 2020, when the SEC accused Ripple Labs and its executives of raising $1.3 billion through the unregistered sale of XRP tokens, which the agency classified as unregistered securities. This lawsuit was one of the first major legal attacks on a cryptocurrency company in the U.S.
A Long and Costly Legal Battle
According to Garlinghouse, the company spent more than $150 million in legal fees. In July 2023, a U.S. District Court judge ruled that XRP was not a security in retail transactions, although institutional sales were found to violate securities laws.
Political Ties and Financial Influence
Garlinghouse and Ripple's executives have made significant financial contributions to U.S. political campaigns, including a $5 million donation to Trump's inaugural committee. This political alignment is speculated to have influenced the SEC's decision.
The SEC's decision to conclude its case against Ripple signifies a potential shift in the U.S. approach to digital asset regulation. It also opens up new opportunities for Ripple and other companies within the crypto sector.
