The Securities and Exchange Commission (SEC) has dropped its appeal against cryptocurrency firm Ripple, ending a four-year legal battle that began with CEO Brad Garlinghouse’s statement calling it the “first major shot fired in the war on crypto.”
In 2020, the SEC sued Ripple over XRP sales, alleging they constituted an unregistered security. This lawsuit was one of several brought by the agency against cryptocurrency firms during Gary Gensler’s tenure as chairman, who described the industry as rife with scams and fraud.
Garlinghouse claims that the SEC’s actions were driven by a desire to intimidate rather than protect investors, causing $15 billion in value loss for innocent XRP holders. Ripple’s CEO stated that the agency was not seeking justice but winning at all costs.
A US District Judge had previously ruled that XRP sales on public exchanges did not violate federal securities laws but was considered a security when sold to institutional investors. The SEC had appealed this decision, but now dropping its appeal implies that they have accepted the outcome.
Ripple’s Chief Legal Officer Stuart Alderoty said the company will evaluate how best to pursue its cross-appeal, but stated that today marks “a day to celebrate this victory.” The abandoned case is linked to Ripple’s ongoing disputes over a $125 million penalty imposed last year.
Source: https://www.bankingdive.com/news/sec-drop-ripple-case-xrp-lawsuit-125-million-penalty-garlinghouse-alderoty-gensler/743089