Ripple CEO Announces Victory, Crypto Market Reacts Positively
Ripple CEO Brad Garlinghouse has officially declared the end of the company’s four-year legal dispute with the U.S. Securities and Exchange Commission (SEC). In a video posted on X (formerly Twitter) on March 19, Garlinghouse reiterated that XRP is a digital asset, not a security. Following the announcement, XRP surged over 10% on international exchanges on March 20, reflecting renewed investor confidence.
“With today’s news, the war on crypto has ended in defeat for those who turned our own government against an entire industry,” Garlinghouse said, days after attending Donald Trump’s crypto summit at the White House. He further emphasized the role of new leadership in fostering a pro-crypto and pro-innovation approach within the U.S.
SEC vs. Ripple: A Landmark Case in Crypto History
The SEC initially sued Ripple in 2020, alleging that the company sold XRP as an unregistered security. The lawsuit, filed under then-SEC Chair Gary Gensler, accused Ripple of raising over $1.3 billion through an unregistered digital asset securities offering between 2013 and 2020. Ripple co-founder Christian Larsen and Garlinghouse were also named in the lawsuit for allegedly using the funds to finance the company’s operations.
According to the SEC, Ripple should have registered XRP sales under federal securities laws before offering it to retail investors and the broader secondary market. The regulatory body also criticized Ripple for failing to provide necessary disclosures about its business, which are standard in the U.S. public market system.
Court Rulings and Final Settlement
Ripple and its executives consistently denied the SEC’s claims, arguing that XRP was never a security, unlike stocks, bonds, or mutual funds. The legal battle saw a major turning point in July 2023 when U.S. District Judge Analisa Torres ruled in favor of Ripple, stating that XRP’s “programmatic sales” to retail investors did not constitute securities transactions. Programmatic selling involves automated asset sales without direct interaction with buyers.
However, in August 2023, Judge Torres ruled that XRP sales to institutional investors did qualify as securities transactions, leading to a $125 million fine against Ripple. The company appealed to the 2nd U.S. Circuit Court of Appeals in Manhattan, leaving the final resolution of the fine uncertain.
XRP Price Surge and Market Reaction
The conclusion of Ripple’s legal battle had an immediate impact on the broader cryptocurrency market. The overall crypto market surged by 2.88% in the past 24 hours, with Bitcoin climbing from $83,000 to $86,000. Meanwhile, XRP, ranked fourth by market capitalization on CoinMarketCap, is currently trading at $2.44.
“The SEC dropping its long-running case against Ripple (XRP) led to a 10% jump in the token. This move strengthens confidence in the regulatory stance, signaling potentially more pro-crypto decisions ahead,” said Edul Patel, Co-founder and CEO of Mudrex, in a statement to Gadgets 360. CoinDCX also called the ruling a “historic win for the crypto space.”
A Shift in U.S. Crypto Regulation Under Trump
Under the leadership of Donald Trump, the SEC has withdrawn cases against multiple Web3 firms, including Coinbase, Binance, Robinhood, and OpenSea, indicating a significant shift in the U.S. government’s approach toward cryptocurrency regulation.
As the largest global economy embraces blockchain innovation, industry experts anticipate further regulatory clarity and a more favorable landscape for cryptocurrency growth.
