Story highlights
- Ripple wins as SEC drops lawsuit, XRP price jumps 14%
- Ripple CEO expects XRP ETF approval before 2025 ends
- XRP may become part of U.S. digital asset reserve
- Ripple IPO possible but remains a secondary priority for now
In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has decided to drop its appeal and lawsuit against Ripple Labs. Ripple CEO Brad Garlinghouse announced this news, marking the end of a five-year legal battle. This court ruling particularly affected XRP cryptocurrency along with the complete crypto industry.
Garlinghouse expressed his excitement on X (formerly Twitter). He wrote, “This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.”
XRP Price Surges 14% After SEC Ends Legal Fight
The Security and Exchange Commission introduced its complaint to the courts in December 2020. Ripple faced SEC charges for performing an unregistered securities transaction through XRP sales which exceeded $1.3 billion. XRP’s programmatic sales to retail investors received a judicial ruling from U.S. District Judge Analisa Torres, who determined these transactions did not qualify as securities transactions in July 2023. The court determined institutional XRP sales violated securities laws but protected the SEC’s ability to prosecute further cases.
Ripple obtained a major regulatory success after the SEC decided to dismiss its appeal and drop legal proceedings. The regulatory status of digital assets throughout the United States could potentially receive direction from this current decision. This event will have an impact on the SEC’s method of regulating cryptocurrencies moving forward. The share price of XRP jumped by 14% after this news became public.
Ripple CEO Predicts XRP ETF Launch by Late 2025
The current result did not meet expectations. The SEC has begun to release various legal actions against crypto companies during the recent period. The SEC has finalized multiple legal proceedings targeting Coinbase along with Robinhood and Kraken during the previous month.
For the future, Ripple’s CEO anticipates great potential from XRP. The CEO anticipates an XRP exchange-traded fund (ETF) launching its operations before 2025 concludes. XRP shows potential to integrate into the White House reserve system of digital assets according to his prediction. In a Bloomberg Markets interview, he confirmed that IPOs for Ripple Labs are feasible but not currently the company’s primary focus.
Furthermore, he said that XRP exchange-traded funds (ETFs) have the potential for increased regulatory approval in late 2025, according to Garlinghouse’s. He noted that over ten applications from firms like Bitwise and Franklin Templeton are currently pending with the SEC.
