After more than three years of litigation, the SEC is dropping its case against Ripple Labs.
History of the Legal Case
The legal case against Ripple Labs began over three years ago. The SEC accused the company of illegally selling securities in the form of XRP tokens. However, a recent ruling by Judge Analisa Torres favored Ripple and led to the SEC dropping its appeal.
Implications for Ripple and Crypto
The decision to drop the case acknowledges XRP not as a security under the Howey test but as a payment system. This event may boost further cryptocurrency market developments. SEC Chair Paul Atkinson has expressed support for crypto asset adoption efforts.
Market Reaction to the News
Following the announcement, XRP's price spiked by 24%, trading around $2.5. The market capitalization has reached approximately $233 billion, with an average daily trading volume of about $5.4 billion. Despite this, the activity of major investors in the market remains stable.
The end of the SEC case opens new opportunities for Ripple and the cryptocurrency market as a whole, affirming a push towards the legitimization of the use of crypto assets.
