Sec rescinds allegations versus Ripple
The U.S. Securities and Exchange Commission (SEC) has announced the withdrawal of its appeal in the legal dispute with fintech company Ripple. Chief Executive Officer Brad Garlinghouse shared the news via a tweet on March 19, 2025.
The decision marks the end of a prolonged legal battle between the two parties, with potential implications for the entire cryptocurrency industry. The SEC's case against Rippe hinged on the claim that XRP, Ripple's digital asset, is a security. However, the courts did not uphold this argument in secondary markets, suggesting a degree of regulatory ambiguity that has long been a contentious issue.
The withdrawal of the appeal is seen as an acknowledgment of the need for clearer guidelines and regulations for cryptocurrencies. Ripple has consistently argued that the SEC cannot enforce regulations without first providing clarity.
The resolution of the dispute could lead to increased institutional adoption of XRP as companies may view it as a safer investment option due to the reduction of legal uncertainty. This could potentially result in a price rally for XRP and even pave the way for XRP-based exchange-traded funds (ETFs).
A settlement agreement was reached on May 8, 2025, which includes a $50 million penalty for Ripple—a 60% reduction from initial figures. The settlement is subject to the lifting of an injunction and the distribution of funds.
This significant development highlights a shift in the regulatory landscape for cryptocurrencies, emphasizing the demand for clearer guidelines and enforcement practices in the industry.
The withdrawal of the SEC's appeal in the Ripple case indicates a need for more defined regulations in the cryptocurrency industry, particularly concerning digital assets like XRP. This shift in the regulatory landscape, marked by the settlement agreement, could potentially attract more businesses and investments in XRP, leading to increased adoption and possible XRP-based exchange-traded funds (ETFs).
