The U.S. Securities and Exchange Commission (SEC) has closed its lawsuit against Ripple Labs, concluding a four-year legal battle.
History of the Ripple Case
The case began in December 2020 when the SEC accused Ripple of selling XRP as an unregistered security. This prolonged case resulted in significant losses for XRP holders, estimated at $15 billion.
Court Ruling and Ripple's Victory
In 2023, a judge ruled that XRP sales on public exchanges did not violate securities laws, dealing a major blow to the SEC's allegations. Brad Garlinghouse stated, 'We won on every critical legal point.'
Market Impact and Reaction
Following the announcement, XRP's price surged by 14%, and trading volume increased by 73%. Garlinghouse thanked the Ripple team and the XRP community for their resilience through the fight.
The closure of the case highlights the need for clear regulations in the crypto industry and paves the way for improved legislative frameworks.
