SEC Drops Appeal, XRP Surges 20%

Ripple CEO Brad Garlinghouse announced that the United States Securities and Exchange Commission (SEC) will dismiss its appeal in the enforcement case it has been pursuing against the blockchain company for over four years. This news has sparked a significant surge in the price of the XRP token, reflecting a jubilant sentiment across the crypto community.

In a video shared on his X account, Garlinghouse stated, “This is it — the moment we’ve been waiting for. The SEC will drop its appeal — a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let’s build.” He further elaborated that the case, which began in 2020, has finally concluded with the SEC's decision to drop its appeal. The SEC had initially accused Ripple of raising $1.3 billion through the sale of XRP, claiming it was an unregistered security. However, in July 2023, District Judge Analisa Torres ruled that Ripple’s programmatic sales did not violate securities laws, although she found that the company’s direct XRP sales to institutional investors qualified as securities. The SEC had filed an appeal seeking to overturn this decision.

Following Garlinghouse’s announcement, the price of XRP surged, hitting local highs. The Ripple-affiliated coin is currently one of the largest crypto assets by market capitalization. Garlinghouse expressed confidence that Ripple’s legal victory sends a strong message about the future of cryptocurrency innovation in the United States, following years of what he described as intimidation and terror from the SEC under Gary Gensler’s leadership.

The end of this lawsuit also increases the likelihood of a spot XRP exchange-traded fund (ETF) hitting the U.S. market. Several issuers have filed for such a vehicle in recent months, with experts previously placing odds for approval at a significant percentage for the end of this year. Additionally, XRP was among the cryptocurrencies indicated to be part of a strategic U.S. crypto reserve.