In a pivotal development for the cryptocurrency industry, Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) intends to withdraw its appeal in the case against Ripple Labs. This legal battle, which began in 2020, has played a crucial role in shaping discussions about regulatory oversight in the crypto space.
Following Garlinghouse’s announcement, speculation arose regarding the lack of an official statement from the SEC. Addressing these concerns, journalist Eleanor Terret explained that the SEC must formally approve the withdrawal before making a public announcement.
She further noted that the Commission typically handles litigation and enforcement matters during its closed meetings, with the next one scheduled for Thursday. Once the withdrawal is approved, Terret expects the SEC to release a statement similar to its announcement dismissing the lawsuit against Coinbase a few weeks ago.
The SEC’s legal battle with Ripple revolved around allegations that the company conducted unregistered securities sales via its XRP token. The withdrawal of the SEC’s appeal could mark a turning point in the regulatory treatment of cryptocurrencies. By stepping away from further legal action, the SEC might be signaling a more measured approach to digital assets, particularly regarding whether tokens like XRP should be classified as securities.
A resolution in Ripple’s favor could set a precedent for other crypto-related cases, influencing how future regulatory frameworks develop. It also reinforces the argument that XRP and potentially other digital assets do not meet the definition of securities under U.S. law.
Investor sentiment surrounding Ripple has been overwhelmingly positive in response to the SEC’s withdrawal. Following Garlinghouse’s announcement, XRP surged by 8%, reflecting market confidence in Ripple’s strengthened position. Traders and analysts are closely monitoring whether this momentum will continue, with some speculating that XRP’s price could climb higher as regulatory uncertainty dissipates.
Beyond Ripple, the broader cryptocurrency market may also benefit from this outcome. The decision could encourage more institutional investors to enter the crypto space, given the reduced risk of regulatory crackdowns.
While the announcement from Garlinghouse and insights from Terret have provided clarity, an official statement from the SEC remains pending. The upcoming closed-door meeting will likely be a key moment in finalizing the withdrawal. If the SEC follows through with its appeal withdrawal, it could be seen as an implicit acknowledgment of the evolving regulatory landscape for cryptocurrencies.
The SEC’s decision to back away from its legal battle with Ripple is a monumental moment for the crypto industry. As regulatory frameworks continue to evolve, the resolution of this case could serve as a guidepost for future interactions between regulators and blockchain.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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