Summary
-
The SEC has dropped its four-year lawsuit against Ripple, a decision announced by CEO Brad Garlinghouse, marking the end of a long and costly legal battle.
-
Garlinghouse declared the resolution a victory for Ripple and the crypto industry, emphasizing that court rulings have established XRP is not a security, setting a legal precedent.
-
He criticized the SEC’s approach under Chairman Gensler, stating it was intended to intimidate the crypto industry rather than protect investors, and expressed hope this victory will empower others to challenge regulatory overreach.
-
The outcome is seen as potentially significant for future crypto regulation in the US, with Garlinghouse urging industry unity and envisioning the US becoming a global crypto hub.
In a landmark development for the cryptocurrency sector, the United States Securities and Exchange Commission (SEC) has decided to discontinue its protracted legal action against Ripple.
This resolution, disclosed by Ripple CEO Brad Garlinghouse on social media platform X, marks the conclusion of a four-year dispute.
Garlinghouse emphasized the profound financial impact of this legal battle, estimating that it cost XRP holders approximately $15 billion in losses.
Addressing the crypto community via video, Garlinghouse declared, “I am at last in a position to confirm that this case has concluded. It is definitively over.”
Four-Year Legal Battle Concludes
Reflecting on the inception of the lawsuit four years prior, he asserted, “With hindsight, it’s unequivocally clear that the SEC’s case was fundamentally flawed from its very inception.”
Garlinghouse’s announcement builds upon prior reports indicating the SEC’s internal discussions regarding potentially reclassifying XRP as a commodity, a consideration that arose amidst settlement negotiations with Ripple.
This potential re-evaluation stems from examining XRP’s functionalities and market behaviors, drawing parallels to Ethereum, which the SEC has already categorized as a commodity.
A shift in the SEC’s regulatory approach to cryptocurrency has become increasingly apparent under the stewardship of Acting Chairman Mark Uyeda.
The regulatory body has notably retreated from over ten prominent crypto enforcement cases.
These include actions directed at major industry players such as Coinbase, Uniswap Labs, and Kraken, signifying a potential broader recalibration of the SEC’s posture toward the digital asset space.
In a strong statement, Garlinghouse framed the SEC’s withdrawal as “a victory and a belated capitulation.”
He critically assessed the SEC’s motivations under Chairman Gary Gensler, suggesting their aggressive stance against the crypto industry, using arguments analogous to those deployed against Ripple, was not rooted in investor protection but aimed at intimidation and coercion.
XRP’s Non-Security Status Affirmed as Legal Precedent
Reinforcing the implications of previous judicial decisions, Garlinghouse highlighted that the courts had already established crucial legal precedents by determining XRP’s non-security status.
He affirmed, “Our previous court victories on pivotal legal aspects, proving that XRP is a digital asset, not a security, now constitute established legal precedent.”
Garlinghouse elaborated that these legal triumphs provide a foundation for policymakers to develop crypto regulations consistent with established securities law principles refined over almost a century.
Garlinghouse proclaimed the resolution as the termination of what he termed “the war on crypto.”
He voiced his optimism that Ripple’s successful defense would serve as an empowering example for other participants in the crypto industry, emboldening them to challenge regulatory overreach.
Call for Industry Unity and US Crypto Leadership
“Today signifies the close of a significant chapter in the history of cryptocurrency,” Garlinghouse remarked.
He characterized the outcome as strengthening the entire industry due to previous litigation successes culminating in “today’s landmark victory.”
He pointed to increasing political momentum in favor of crypto, including favorable election results and the emergence of governmental leadership aiming for “a rational and constructive pathway forward on crypto.”
Extending a call for unity, Garlinghouse urged industry stakeholders to “unite” and move past internal divisions, expressing his vision for the United States to emerge as the world’s preeminent “crypto capital.”
Finally, Garlinghouse conveyed his gratitude to Ripple’s staff, its legal representatives, the XRP community, and various partners for their steadfast support throughout the prolonged and demanding legal proceedings.
“Our collective strength and solidarity were indispensable to securing this victory,” he acknowledged.
Also Read: Ripple CEO Tempers IPO Expectations Despite Favorable SEC Case Development XRP Raises
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
Wallets