XRP Price Climbs as Ripple CEO Announces End to SEC Lawsuit

The cryptocurrency XRP experienced a significant increase in value following an announcement from Ripple CEO Brad Garlinghouse that the Securities and Exchange Commission has decided to abandon its appeal in the legal battle against the payments company. As of the latest, XRP’s price rose by nearly 14%, reaching $2.57.

This development marks a turning point in a case that began nearly four years and three months ago, when the SEC first initiated legal action against Ripple in 2020. Speaking at the Digital Assets Summit in New York on Wednesday morning, Garlinghouse reflected on the challenging journey, emphasizing his belief that Ripple would ultimately prevail both legally and historically.

Garlinghouse expressed frustration with the regulatory process, describing the system as flawed and pointing out that the SEC’s actions appeared to target the broader cryptocurrency industry rather than address specific wrongdoing. He noted that the Ripple case involved no victims or investor losses, questioning the agency’s approach.

The original lawsuit accused Ripple of violating U.S. securities laws by selling XRP without proper registration. A notable ruling came in 2023 when U.S. District Judge Analisa Torres determined that XRP was not a security when sold to retail investors on exchanges, though sales to institutional investors were classified as unregistered securities offerings. This decision was widely regarded as a key victory for the crypto sector.

Shifting Regulatory Landscape Boosts Crypto Confidence

The SEC’s decision to drop its appeal aligns with broader changes in the agency’s approach to digital assets. Recent actions suggest a shift toward repairing relations with the cryptocurrency industry. Last month, the SEC concluded its case against Coinbase and ceased investigations into several other prominent platforms, including Robinhood’s crypto division, Uniswap, Gemini, and Consensys, without pursuing enforcement measures. The agency also reduced the size of its crypto enforcement unit and clarified that meme coins do not fall under the securities category. These steps indicate a departure from the more aggressive stance seen in previous years.

This week, a newly established SEC crypto task force will launch a series of roundtable discussions aimed at clarifying the security status of digital assets, signaling a more collaborative approach. For Ripple, the resolution of the lawsuit removes a significant obstacle. XRP, created in 2012 by Ripple’s founders, serves as the native token of the XRP Ledger, an open-source platform that supports the company’s cross-border payments operations, with roughly 95% of that business occurring outside the United States. Ripple remains the largest holder of XRP coins, tying the company’s fortunes closely to the token’s performance.