SEC Drops Appeal Against Ripple, Marking Major Win for Cryptocurrency Industry

The U.S. Securities and Exchange Commission (SEC) has withdrawn its appeal against Ripple, a leading digital asset infrastructure provider, marking the end of a four-year legal dispute. Ripple CEO Brad Garlinghouse announced the decision on X, calling it a major triumph for both the company and the cryptocurrency industry.

Ripple operates a platform enabling real-time cross-border payments, tokenization, and regulatory compliance for financial services. The legal battle began in December 2020 when the SEC accused Ripple of conducting a $1.3 billion unregistered securities offering. This case was closely watched as it carried significant implications for the classification and regulation of digital assets.

During the lawsuit, Ripple successfully argued that its digital currency, XRP, is not a security, a ruling that has now been upheld. This distinction is critical for the cryptocurrency industry, as it clarifies the legal status of XRP and potentially sets a precedent for other digital assets.

The prolonged legal conflict had resulted in an estimated $15 billion in losses for XRP holders. However, Ripple’s victory on key legal points has provided clarity and relief to the market. Garlinghouse expressed optimism about the future, stating, "The future is bright. Let’s build."

With the legal battle resolved, Ripple is now poised to focus on expanding its digital asset infrastructure and advancing its mission to transform cross-border payments and financial services. This outcome is widely viewed as a positive development for the cryptocurrency sector, signaling a more favorable regulatory environment for innovation.