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Securities and Exchange Commission (SEC) Ceases Litigation against Ripple

Discussions surge over possible political influences in the Ripple lawsuit and the determination of XRP's commodity status remains debated.

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Contention arises over whether XRP is a commodity as political factors potentially shape the Ripple...
Contention arises over whether XRP is a commodity as political factors potentially shape the Ripple lawsuit's course.

Securities and Exchange Commission (SEC) Ceases Litigation against Ripple

In a significant turn of events, the U.S. Securities and Exchange Commission (SEC) has finally dropped its lawsuit against Ripple Labs, marking the end of a long-drawn-out, four-year legal battle that left rippples across the crypto industry.

Ripple's CEO, Brad Garlinghouse, announced the decision on March 19, calling it a much-awaited resolution. Reflecting on the prolonged legal dispute, he declared that the case was "doomed from the start." In an exultant tweet, he wrote, "I'm finally able to announce that this case has ended. It's over."

The SEC initially filed the lawsuit against Ripple Labs in 2020, alleging that the company had raised $1.3 billion through the sale of XRP, which it claimed was an unregistered security. This legal battle led to significant market volatility and losses estimated at around $15 billion for XRP holders.

However, in a pivotal ruling last year, U.S. District Judge Analisa Torres determined that Ripple's programmatic sales of XRP did not violate securities laws due to a blind bid process. However, she ruled that direct sales to institutional investors did constitute securities transactions, leading to a $125 million fine for Ripple.

Market Rebounds Amidst Positive Response

Following the SEC's withdrawal, XRP's price skyrocketed by nearly 13%, pushing it above $2.5, with trading volume reaching $5.7 billion. Investors celebrated the development, signaling renewed confidence in the digital asset's future.

The SEC's decision aligns with a broader shift in its regulatory stance under Acting Chairman Mark Uyeda. The agency has recently withdrawn from over ten high-profile crypto enforcement cases, including those involving Coinbase, Gemini, OpenSea, Robinhood, Uniswap, and Consensys.

political Factors and XRP's Future Classification

Legal experts suggest that political factors may have played a role in the case's resolution. Reports indicate that Ripple contributed $5 million to President Donald Trump's inauguration fund. Additionally, Garlinghouse reportedly met with Trump in January 2025, raising speculation about potential political influences on the SEC's decision.

The SEC's retreat from its lawsuit also comes amid discussions about XRP's classification. Recent reports indicate that the agency is considering recognizing XRP as a commodity, similar to Ethereum, based on its trading characteristics and utility.

Stay tuned as we continue to bring you the latest updates on this breaking story. In the meantime, don't forget to follow us on Google News for more exciting insights into the crypto world!

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[1] SEC vs. Ripple: Judge Clears Ripple of Securities Law Violations

[2] SEC Loses Judge on Ties to Crypto Firm Execs

[3] Ripple’s Hopes of Binance Listing Raise Questions of Securities Law

[4] Ripple Heads to Trial in SEC Lawsuit on XRP as Both Sides Rally Support

[5] SEC Drops its Five-Year Battle With Tezos Founders

  1. As the SEC has withdrawn from its lawsuit against Ripple Labs, preparing for a new era in the crypto industry, the price of XRP surged by nearly 13%, with trading volume reaching $5.7 billion, showing a renewed confidence among investors.
  2. The digital asset's future classification is now a topic of discussion, with legal experts suggesting that political factors might have influenced the resolution of the four-year legal drama.
  3. The SEC's decision aligns with a broader shift in its regulatory stance, evidenced by the recent withdrawal from over ten high-profile crypto enforcement cases, including those involving Coinbase, Gemini, OpenSea, Robinhood, Uniswap, and Consensys.
  4. Brad Garlinghouse, Ripple's CEO, declared that the case was "doomed from the start," highlighting the significant impact it had on the cryptocurrency market, causing market volatility and losses estimated at around $15 billion for XRP holders.
  5. The SEC's retreat from its lawsuit comes amid discussions about potentially recognizing XRP as a commodity, similar to Ethereum, based on its trading characteristics and utility, which would have significant implications for the finance industry and cryptocurrency technology.

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