The case initiated by the U.S. Securities and Exchange Commission (SEC) against Ripple may soon come to an end. Over four years ago, the SEC accused Ripple of illegally raising funds by selling XRP as unregistered securities.
A Trial Coming to an End
In December 2020, the SEC filed a lawsuit against Ripple Labs, accusing the company of illegally raising funds by selling XRP as unregistered securities. In August 2024, a court ruled that programmatic sales of XRP on exchanges did not constitute an offer of financial securities but fined Ripple $125 million. Both parties have contested this verdict, leading to a series of appeals and counter-appeals.
Between Politics and Regulation
If the end of this trial brings relief to Ripple and its investors, it also raises questions about the timing and the true motivations of the SEC. For months, the U.S. regulator has dropped several lawsuits against major players in the crypto space. One element fueling the controversy is the financial ties between Ripple and some Republican political groups. Ripple contributed $45 million to the political action committee Fairshake during the elections and donated $5 million to Trump's inauguration.
Impact on the Crypto Industry
The conclusion of this trial will have significant implications for the crypto industry. If the SEC reduces its regulatory aggressiveness, it could encourage more companies to establish their businesses in the U.S. However, if the agreement between Ripple and the SEC involves major concessions, it could set a precedent for other similar trials.
The legal battle between the SEC and Ripple may become a turning point for cryptocurrency regulation in the U.S. Its outcome could define future relations between regulators and the crypto industry.
