Key Takeaways
- Ripple CEO Brad Garlinghouse announced that the SEC had dropped intentions to pursue its appeal against Ripple.
- The Price of XRP surged 11% following the announcement, with experts predicting it could reach $10 soon.
- The case outcome is good news for Ripple, XRP, and the broader cryptocurrency market.
Ripple CEO Brad Garlinghouse has provided an update on the firm’s ongoing legal battle with the US Securities and Exchange Commission (SEC) after the agency said it was no longer pursuing an appeal against the payment company. Meanwhile, market data shows that the price of XRP surged 11% to $2.52 following the announcement.
The SEC Has Abandoned Their Appeal
On March 19, Ripple CEO Brad Garlinghouse confirmed that the SEC had finally dropped its appeal against Ripple Labs, granting the crypto firm a significant win that extends to the broader crypto industry. XRP has already gained over 200% during the last few months and become one of the best-performing cryptocurrencies in the recent past. Speaking after the appeal, Garlinghouse stated:
“This provides a lot of certainty for Ripple, for frankly, me personally because the SEC had sued me. The SEC has abandoned their appeal.”
Garlinghouse for the stated:
“This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.”
Ruling Strengthens Ripple’s Position
Garlinghouse further celebrated the moment, highlighting that the outcome proved that Ripple operated within the law. Describing the SEC’s decision as a turning point for the entire crypto industry, Garlinghouse maintained that the decision has further reinforced the legitimacy of cryptocurrencies. Commenting on the outcome, Ripple’s Chief Legal Officer, Stuart Alderoty, said the ruling would strengthen Ripple’s position and set a precedent for the US crypto market. Alderoty said:
“With the SEC dropping its appeal, Ripple is now in the driver’s seat, and we’ll evaluate how best to pursue our cross-appeal. Regardless, today is a day to celebrate this victory.”
Regarding the way forward, Garlinghouse observed that the firm still had a pending cross-appeal, meaning it would now take the driving seat and determine the next step, adding that it would put Ripple in a position to make a strategic decision regarding the appeal. He said:
“We go from being defendants really to plaintiffs.”
And on whether the firm was going to drop its appeal, he said:
“We’re gonna see. It feels much better to be on the offense than the defense.”
Garlinghouse revealed that the company had spent over $150 million in legal expenses to defend itself and the larger crypto community. Blaming SEC chair Gary Gensler for the crypto industry’s predicaments, he said:
“The Gensler SEC was trying to bully and continue with lawfare, filing lawsuits and lawsuits against crypto companies. That’s over now.”
Ripple Will Explore Acquisition Opportunities
The SEC sued Ripple Labs in 2020 for allegedly breaching the US Securities laws when the firm sold XRP tokens before registering with the regulator. The company achieved a partial win in 2023 when US District Judge Analisa Torres handed down the decision, which the entire crypto community hailed as a landmark win. Nonetheless, while the judge ruled that XRP wasn’t considered a security when sold to individual investors, it became an unregistered security when the firm sold it to institutional investors.
In light of this ruling, speculation about a potential Ripple IPO is now high, even though Garlinghouse has stated it’s not a priority. Instead, Ripple will explore acquisition opportunities focusing on blockchain infrastructure as part of a broader industry consolidation effort. Garlinghouse noted a positive shift among central US banks, which are beginning to reconsider their stances on crypto, particularly in crypto custody and payments.
Conclusion
Ripple’s legal victory against the SEC could remove barriers that have long hampered XRP’s growth. The outcome stands as a testament to the evolving nature of crypto regulations and the potential for future growth. Investors and stakeholders are keen to see XRP’s trajectory after this.
Frequently Asked Questions (FAQs)
What happened in past rulings of the long-drawn legal battle?
In 2023, District Judge Analisa Torres ordered Ripple to pay a $125 million penalty for its institutional XRP sales, deemed unregistered securities offerings but spared the company a nearly $2 billion fine demanded by the SEC.
How much will XRP be worth, considering the latest news?
The price of XRP has the potential to soar dramatically. Consequently, many expert analysts are setting new price targets, confidently predicting that XRP could surpass the remarkable threshold of $10.
What would have happened if Ripple had lost the case against the SEC?
If Ripple loses all appeals, the SEC will likely collect the $1.3 billion, the amount that the regulator alleges Ripple earned from the unregistered securities sale, and offer XRP holders an option to sell their holdings.
