The XRP lawsuit has taken a significant turn as the SEC formally withdrew its final claims against Ripple Labs.

The XRP lawsuit has taken a significant turn as the SEC formally withdrew its final claims against Ripple Labs.

The U.S. Securities and Exchange Commission (SEC) has formally withdrawn its final claims against Ripple Labs in the wake of the XRP lawsuit.

The regulator’s actions have been met with criticism from Ripple’s Chief Legal Officer, who calls for legislative clarity. As the XRP lawsuit nearly reaches its closure, Ripple turns its attention to long-term regulatory reform.

The SEC sued Ripple in December 2020 for allegedly offering unregistered XRP securities to the public. The case saw key developments, including a 2023 ruling that secondary XRP sales were not securities. The commission later dropped charges against Ripple executives Brad Garlinghouse and Chris Larsen.

After the SEC backed out of further litigation, Ripple’s legal team questioned the motive behind the lawsuit’s initiation.

“Enforcement cannot substitute proper regulation,” said Stuart Alderoty, Ripple’s CLO.

The XRP lawsuit’s outcome has fueled broader concerns about inconsistent oversight in the crypto industry.

The U.S. crypto firms face risks due to a lack of clear frameworks, according to Ripple’s legal stance, which emphasized structure over punishment through uncertain litigation.

The XRP lawsuit exposed gaps that persist in digital asset policy enforcement.

Conclusion of the XRP lawsuit sparks renewed appeals for targeted legislation in digital finance.

“Congress must define the rules for crypto in a way that protects consumers and supports American innovation,” said Alderoty. “Without legislation, enforcement creates confusion and disrupts the market.”

Multiple industry participants have joined Ripple in demanding that lawmakers replace outdated rules with transparent legal standards. Bills have surfaced, but bipartisan consensus and regulatory alignment remain lacking.

The XRP lawsuit highlighted how prolonged enforcement actions affect company operations and public trust.

“Arbitrary regulation hurts all stakeholders: compliant companies, U.S. economic interests, and the broader public,” said Alderoty.

Now, Ripple aims to participate in shaping legislation to prevent future legal ambiguity. The XRP lawsuit’s resolution may set a precedent for proactive policy engagement in crypto governance.

Ripple has positioned itself as a strong advocate for regulatory modernization following the XRP lawsuit’s closure.

The company now focuses on influencing clear legislative frameworks for digital assets. Ripple sees this shift as essential for stability and growth in the crypto sector.