In a landmark development for the crypto industry, the US Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Ripple, marking the end of a five-year legal battle. Ripple CEO Brad Garlinghouse shared the news in an X post, calling it a "resounding victory" for the company and the broader crypto sector. The decision, though still requiring a formal Commission vote, is expected to be a mere formality.
Reflecting on the case, Garlinghouse stated that the lawsuit was "doomed" from the start, highlighting that Ripple was the first company to challenge the SEC’s overreach in the crypto space. He also criticized SEC Chair Gary Gensler, arguing that the Commission's enforcement approach was not about investor protection but rather about intimidation. The legal dispute originated from the SEC’s claim that XRP was an unregistered security, a stance that was overturned by Judge Analisa Torres in 2023, who ruled that XRP is not a security.
With the lawsuit resolved, speculation is growing about Ripple’s next moves. Crypto analysts suggest the firm may soon announce an initial public offering (IPO) and expand its partnerships with financial institutions. Additionally, Garlinghouse emphasized that the legal victory has laid the foundation for policymakers to develop crypto regulations that align with existing securities laws.
Looking ahead, Garlinghouse expressed optimism about US crypto policy, particularly as new leadership in Washington seeks to establish a "rational and constructive" approach to digital assets. Recent reports indicate that the US Congress could pass stablecoin legislation within the next two months, potentially paving the way for former President Donald Trump’s approval.
Garlinghouse concluded by urging the crypto community to unite, set aside internal divisions, and collaborate on industry-wide progress. He extended his gratitude to the Ripple legal team, employees, XRP community, and supporters who played a crucial role in achieving this legal victory.
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