In a landmark development for the cryptocurrency sector, the United States Securities and Exchange Commission (SEC) has decided to terminate its protracted legal action against Ripple Labs.
This conclusion, declared by Ripple’s Chief Executive Officer, Brad Garlinghouse, via the social media platform X on March 19th, brings to a close a contentious four-year legal battle.
Garlinghouse highlighted that the dispute had resulted in substantial financial detriment, estimated at $15 billion, for individuals holding XRP, Ripple’s associated digital asset.
“I am able to finally declare that this legal matter is concluded. It is finished,” Garlinghouse conveyed in a video communication.
Reflecting on the initiation of the case four years prior, he stated, “It is now abundantly clear to me that this lawsuit was fundamentally flawed from its inception.”
Ripple CEO Announces SEC Lawsuit Withdrawal
Garlinghouse’s public announcement follows recent indications suggesting the SEC was contemplating a revised classification for XRP, potentially categorizing it as a commodity.
This shift in perspective reportedly arose during settlement negotiations with Ripple and involved an evaluation of XRP’s practical applications and trading attributes, drawing parallels to Ethereum, which the SEC already recognizes as a commodity.
Under the direction of Acting Chairman Mark Uyeda, the SEC has seemingly embarked on a recalibration of its regulatory methodologies concerning digital assets.
Evidencing this change in direction, the regulatory body has withdrawn from over ten significant crypto-related enforcement cases.
These previously targeted prominent entities within the cryptocurrency space, including Coinbase, Uniswap Labs, and Kraken, amongst others.
“Today marks both a triumph and a long-awaited capitulation by the SEC,” asserted Garlinghouse.
He criticized the SEC’s approach under Chairman Gary Gensler, alleging that the agency’s aggressive stance, mirroring arguments used against Ripple, was broadly applied to the entire cryptocurrency industry.
“Their objective was not investor protection,” Garlinghouse contended, “but rather to instill fear and subjugation.”
Concluding his address, Garlinghouse urged for industry cohesion, advocating for participants to “unite” and “move beyond factionalism.”
Gratitude Expressed to Supporters
He articulated his aspiration for the United States to assume the mantle of “the global crypto capital.”
Finally, the Ripple CEO conveyed gratitude to Ripple’s workforce, the legal team, the XRP community, and collaborating partners for their unwavering support throughout the drawn-out legal ordeal.
“Our collective unity and dedicated efforts were essential to achieving this victory,” he affirmed.
Also Read: Ripple CEO confident about Washington supporting crypto regulation
