The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has officially ended, marking a pivotal moment for the crypto industry. With the SEC deciding to drop its appeal, prominent voices in the space have reacted positively, including Cardano founder Charles Hoskinson. He described the development as “a great victory for crypto,” signaling broader implications for the industry’s regulatory landscape.
On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had formally dropped its appeal against the company. This decision effectively concludes the high-profile case that began in December 2020, when the SEC accused Ripple of selling XRP as an unregistered security.
Since then, the lawsuit has been a defining moment for crypto regulation in the United States. Judge Analisa Torres ruled in July 2023 that XRP sold on secondary markets was not a security, a decision widely seen as a victory for Ripple and the broader crypto industry. However, the court also ruled that Ripple’s direct sales to institutional investors did qualify as securities transactions, leading to a $125 million fine imposed on the company.
Following the announcement, Cardano founder Charles Hoskinson took to social media to share his thoughts, calling the SEC’s decision “a great victory for crypto.” This reaction underscores the belief that the end of the Ripple lawsuit represents a shift in the SEC’s enforcement stance under the new administration.
Hoskinson has previously been vocal about the need for regulatory clarity in the cryptocurrency sector. His latest comments align with growing optimism that the end of the Ripple case could pave the way for fairer regulations and reduce the SEC’s aggressive approach toward digital assets.
The Ripple case was the first major lawsuit in what many have called the SEC’s “war on crypto.” Under former Chairman Gary Gensler, the agency pursued enforcement actions against multiple crypto firms, including Coinbase, Kraken, Consensys, OpenSea, and Uniswap.
However, under President Donald Trump’s administration, the regulatory landscape appears to be shifting. Over the past few weeks, the SEC has dismissed over 10 major enforcement actions against crypto firms, including the case against Ripple.
This reversal indicates a more lenient approach to the industry, potentially signaling the end of regulatory uncertainty that has plagued crypto businesses in the U.S. since 2020.
While the SEC has dropped its appeal, Ripple has yet to decide on its own cross-appeal. CEO Brad Garlinghouse has hinted that the company may seek to overturn certain aspects of the court’s previous ruling, particularly regarding its institutional sales of XRP.
In August 2024, Ripple was fined $125 million and was prohibited from selling XRP directly to institutions without SEC exemptions. Garlinghouse has suggested that this part of the ruling requires “clean up,” implying that Ripple may continue its legal efforts to remove these restrictions.
The SEC’s decision to drop its case against Ripple is a landmark moment for the crypto industry. The positive reactions from industry leaders like Charles Hoskinson reflect the broader sentiment that the regulatory environment is shifting in favor of crypto innovation. As Ripple weighs its next steps, the outcome of this case could have lasting effects on how digital assets are regulated in the U.S. moving forward.
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