Ripple Achieves Legal Victory as SEC Withdraws Lawsuit, XRP Price Rises
The SEC has withdrawn its lawsuit against Ripple, prompting a surge in XRP’s price by over 10%. Ripple CEO Brad Garlinghouse hailed this as a monumental victory for the cryptocurrency sector. The case had originally accused Ripple of raising $1.3 billion through unregistered XRP sales. The dismissal signals a shift in regulatory enforcement, contributing to renewed investor confidence and speculation about XRP’s future potential.
After enduring over four years of legal challenges, the U.S. Securities and Exchange Commission (SEC) has officially withdrawn its lawsuit against Ripple. This announcement has led to a significant surge in XRP’s value, increasing by over 10%, as investors responded positively to the resolution that had clouded the token’s future since 2020. As of the time of this publication, XRP was trading at $2.53, marking a 12% rise on the daily chart and an 18% increase over the week, according to CoinMarketCap data.
Ripple CEO, Brad Garlinghouse, characterized the SEC’s withdrawal as a “resounding victory” for both Ripple and the broader cryptocurrency industry. He expressed that the moment had finally arrived, what he referred to as “the moment we’ve been waiting for,” and emphasized optimism for the future. His remarks on X encapsulated the significance of the outcome, stating that it presents a bright future for Ripple and the crypto sector overall.
The legal battle began in December 2020 when the SEC accused Ripple of raising $1.3 billion through unregistered sales of XRP, classifying it as a security. A pivotal ruling was made in 2023 when U.S. Judge Analisa Torres determined that while Ripple had breached securities laws in its institutional sales, its programmatic sales to retail investors did not violate regulations. This verdict was viewed as a partial victory for Ripple, though the SEC subsequently filed a notice of appeal. The latest development confirms the SEC’s withdrawal of its appeal and the closure of the case.
The SEC’s decision to abandon the case aligns with a trend of regulatory adjustments. Recently, the Commission has retreated from investigations targeting major crypto firms such as Coinbase and Kraken. The transformation in regulatory stances may be influenced by the departure of former SEC Chair Gary Gensler and the upcoming appointment of Paul Atkins to head the agency, pending approval by Congress.
Following the announcement of the lawsuit’s dismissal, XRP’s trading activity experienced a notable increase, reflecting a reinvigorated confidence among investors. Trading volumes surged by 97%, hitting $7 billion, as reported by CoinMarketCap. Ripple’s optimistic standing may pave the way for business expansion rather than further legal challenges; however, the question remains whether XRP can emerge as the next Bitcoin in the cryptocurrency market.
The SEC’s withdrawal of the lawsuit against Ripple marks a significant milestone for both the company and the cryptocurrency landscape. Ripple’s CEO heralded the event as a defining victory, and the positive market reaction is evident through increased trading volumes and XRP’s price surge. The regulatory landscape appears to be shifting, which could further benefit Ripple’s growth trajectory. However, the status of XRP as a potential successor to Bitcoin remains to be seen.
Original Source: www.tradingview.com
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