In a Major Development, the SEC Drops Its Landmark Lawsuit Against Ripple

In a major development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has officially dropped its landmark lawsuit against Ripple, according to CEO Brad Garlinghouse.

In a surprising development, the U.S. Securities and Exchange Commission (SEC) has dropped its landmark lawsuit against Ripple, according to a statement from CEO Brad Garlinghouse.

The decision marks a major turning point in the cryptocurrency industry, which has been battling regulatory uncertainty for years. The SEC had accused Ripple of illegally raising funds through XRP sales, claiming the token was an unregistered security.

The case, first filed in December 2020, quickly became pivotal in the unfolding narrative of crypto regulation.

The SEC’s move follows a shift in U.S. crypto regulation policy under the Trump administration, which has taken a more pro-crypto stance. Several other enforcement actions against crypto firms, including Coinbase (NASDAQ:COIN) and Binance, have also been dismissed or paused in recent weeks.

Garlinghouse broke the news on X, formerly Twitter, stating that Ripple had finally won its fight against the SEC. A Ripple spokesperson later confirmed the decision, while the SEC has yet to issue an official statement.

The case’s dismissal has significant implications for Ripple and its flagship token, XRP. The SEC’s lawsuit initially led to major price volatility, but the crypto community now anticipates a more stable and regulated future for XRP.

Moreover, Trump recently proposed including XRP in a strategic U.S. crypto reserve, further fueling speculation about the token’s long-term role in the economy. Asset managers like Bitwise have also applied for an XRP-based ETF following the recent approval of several Bitcoin futures ETFs.

The SEC’s case against Ripple was a watershed moment for the industry, setting the tone for regulatory scrutiny over crypto assets. The dismissal of this case and others like it suggests a softer stance on crypto under Trump’s leadership.

Ripple’s political influence has also been a subject of discussion, with Garlinghouse and other executives maintaining close ties with the administration. The company donated $5 million in XRP to Trump’s inauguration fund and held high-profile meetings at Mar-a-Lago.