Ripple Celebrates as SEC Drops Longstanding Case
Crypto market got a boost Thursday after Ripple’s CEO Brad Garlinghouse declared victory in the company’s legal battle with the SEC. The XRP price soared more than 6% on the news.
Garlinghouse announced via video on X: “I’m finally able to announce that this case has ended. It’s over.”
The Case That Shaped Crypto Regulation
The case dates back to late 2020, when the SEC sued Ripple and its executives for raising $1.4 billion through the sale of XRP tokens. Under the Biden administration, the SEC argued that crypto assets like XRP were securities and should be strictly regulated.
The lawsuit cast a long shadow over the crypto industry. XRP’s status remained unclear for years, chilling investor interest. Ripple fought back, asserting the SEC had overreached in its application of securities laws to crypto.
Trump Administration Signals Regulatory Shift
While the SEC has yet to officially confirm its withdrawal, other crypto firms say similar cases have already been dropped. Under President Trump, the regulatory environment for crypto is shifting dramatically.
In February, Coinbase announced the SEC had ended its case accusing the platform of operating as an unregistered securities exchange. Robinhood also said its crypto division was no longer under regulatory scrutiny.
Trump campaigned on a promise to make the U.S. a global leader in crypto. Early actions since returning to the White House support that promise. One major move: the repeal of an SEC accounting rule that burdened crypto firms.
Trump’s Crypto Reserve Boosts Industry Confidence
The president also signed an executive order to create a U.S. Bitcoin reserve, an unprecedented step toward mainstream acceptance of digital assets. The crypto market reacted positively, with industry leaders seeing this as a green light for broader adoption.
The crypto industry has strongly supported Trump, contributing millions to his campaign and to crypto-friendly lawmakers. This political alliance is now paying dividends.
Ripple’s CEO Urges Broader Crypto Reserve Strategy
Ripple’s CEO Garlinghouse, a vocal Trump supporter, is pushing for the U.S. crypto reserve to include more than just Bitcoin. He wants a diversified digital reserve including Ethereum, XRP, and other key assets.
However, this idea clashes with Bitcoin purists who argue that BTC should be the sole reserve asset. Still, the conversation signals growing interest in institutional-level crypto strategy.
SEC Pauses Enforcement, Reevaluates Crypto Policy
The SEC under Trump appears to be stepping back from aggressive enforcement. It recently paused legal action against Binance, the largest crypto exchange globally.
Additionally, the SEC is hosting a series of roundtables to discuss future regulation. The first meeting is scheduled for Saturday at its Washington, DC headquarters.
This suggests a move toward dialogue, transparency, and potentially new policy frameworks tailored for crypto.