Main Points:
- Four-Year Legal Battle Concludes: Ripple CEO Brad Garlinghouse announced via X that the SEC will formally withdraw its appeal, marking a definitive end to a four-year legal dispute.
- Lawsuit Background: The SEC initially sued Ripple in December 2020 for allegedly selling $1.3 billion in XRP as unregistered securities. A mixed ruling in July 2023 set the stage for further appeals, but now the SEC’s withdrawal effectively cements the lower court’s decision.
- Market Reaction: Following the news, XRP’s price spiked over 13% as investor confidence soared, with market sentiment signaling the start of a new chapter for Ripple and possibly the broader cryptocurrency industry.
1. Four-Year Legal Battle Concludes
After four years of protracted legal proceedings, Ripple CEO Brad Garlinghouse confirmed on March 19 that the SEC is set to formally withdraw its appeal. In his post on X, he celebrated the decision, describing it as a “tremendous victory” for Ripple and the cryptocurrency industry. An official statement from Ripple reiterated that the SEC’s decision to drop the appeal brings an end to the lengthy litigation that began in December 2020.
2. Lawsuit Background and Context
The legal conflict started when the SEC accused Ripple of unlawfully selling XRP as an unregistered security, alleging that Ripple and its executives raised approximately $1.3 billion through these sales. The case saw a landmark ruling in July 2023 by a federal judge in the Southern District of New York, who determined that while XRP sold to retail investors did not qualify as a security, its direct sales to institutional investors did violate securities laws—resulting in a penalty of $125 million for Ripple. The ensuing appeals by both the SEC and Ripple prolonged the dispute, but recent shifts in regulatory stance under the new administration have influenced the SEC’s decision to withdraw its appeal.
3. XRP Price Reaction and Market Impact
The resolution of the Ripple lawsuit has had an immediate positive impact on XRP’s market performance. Investors reacted swiftly to the news, pushing XRP’s price up by more than 13% shortly after the announcement. This surge reflects the market’s relief at the removal of prolonged legal uncertainty and signals renewed optimism for Ripple’s future. Industry commentators are hailing this development as a pivotal moment for Ripple, with some suggesting that the conclusion of the lawsuit may have a broader uplifting effect on the entire cryptocurrency sector.
