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XRP, the cryptocurrency associated with Ripple Labs, experienced a significant price surge of 10% following an announcement by CEO Brad Garlinghouse that the U.S. Securities and Exchange Commission (SEC) is set to drop its appeal against the company. This development marks a pivotal moment in a legal battle that has spanned over four years.
The SEC’s lawsuit, initiated in 2020, accused Ripple of raising $1.3 billion through an unregistered securities offering. In August 2024, a federal judge ordered Ripple to pay a $125 million fine, significantly less than the SEC’s initial demand of $2 billion. The SEC had begun appealing this decision in January but has now decided to abandon the appeal, as confirmed by Garlinghouse.
The resolution of this legal battle has broader implications for the cryptocurrency industry, as it may influence future regulatory approaches toward digital assets. The outcome of the Ripple case has been closely watched, with many viewing it as a potential precedent for how cryptocurrencies are classified and regulated in the United States.
Following the announcement, XRP’s market value rose by 10%, trading at $2.55. Other major cryptocurrencies also experienced gains, with Bitcoin rising 2.2% to $84,096 and Ethereum increasing 6.6% to $2,031.
Garlinghouse hailed the SEC’s decision as a “resounding victory” for Ripple and the broader crypto industry. He criticized the SEC’s previous leadership under Chairman Gary Gensler, claiming that the regulator’s actions were aimed at intimidating and terrorizing the industry. He also noted that the SEC’s lawsuit wiped out $15 billion of value from innocent XRP holders.
The conclusion of this legal battle is expected to have a lasting impact on the regulatory landscape for cryptocurrencies, potentially paving the way for more favorable treatment of digital assets in the United States. Market participants are now anticipating how this development will influence future regulatory policies and the growth of the crypto industry.
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