Ripple Wins Its Long-Standing Legal Battle Against the SEC

Ripple CEO Brad Garlinghouse recently released a 4-minute video announcing that Ripple had won its long-standing legal battle against the SEC.

The US Securities and Exchange Commission (SEC) has decided to drop its appeal in the case against Ripple, the crypto company, over the classification of XRP as a security. This decision brings to an end over four years of legal battles between the two parties.

The appeal had been filed in January by the SEC, following rulings by judges in favor of Ripple in a case that began in 2018. The agency’s decision to appeal, even after Chairman Gary Gensler’s resignation in January, had frustrated Ripple and its supporters.

The SEC sued Ripple in 2018, claiming that its sales of XRP constituted violations of securities laws. However, a judge ruled that XRP is not a security and dismissed the SEC’s claims. The entire crypto community is now awaiting confirmation from the SEC that it has dropped the case.

While the SEC has recently confirmed that it has dropped cases against Kraken and Cumberland, and Payoneer, and reached a settlement with Unchained Capital, to avoid appeal of a lower court ruling in a case brought by a group of investors, Ripple’s case has not yet been officially confirmed.

The news comes as the SEC prepares to vote on Monday on whether to drop its appeal of a lower court ruling that XRP is not a security. The full commission will vote on the appeal during its closed-door meeting.

The SEC is also expected to discuss a request for a 60-day stay of proceedings in its case against Gemini and its CEO, Cameron Winklevoss. The agency and the crypto exchange are due in court on Monday for a hearing on the request.

The SEC sued Gemini in January, alleging that the exchange offered unregistered securities through its Earn product, which paid high interest rates to users who staked crypto.

The agency is planning to appeal a lower court ruling that dismissed the case. But it is open to pausing the appeal while exploring a potential resolution with Gemini.

The request for a stay of proceedings is part of broader efforts by the SEC to assert its authority over the fast-growing crypto industry.

This year, the agency has sued several crypto firms, including Binance and Coinbase, and is battling several cases in court.

The SEC’s actions have drawn criticism from some lawmakers, who say the agency is overstepping its bounds and stifling innovation.

However, the SEC maintains that it is simply enforcing the law and protecting investors.

“The SEC’s mission is to protect investors, maintain fair, orderly, and efficient markets, and promote the formation of capital,” the agency said in a statement.

“We are committed to carrying out these responsibilities in the rapidly evolving context of digital assets.”

The SEC’s decision to drop its appeal in the Ripple case is a welcome development for the crypto community.

The case had been a major source of contention, with supporters of crypto arguing that the SEC was overreaching its authority and stifling innovation.

The ruling by the judge that XRP is not a security is a significant victory for the crypto industry. It could pave the way for other cryptocurrencies to be recognized as legitimate investment vehicles.

The case is now set to be passed to a higher court for review. It remains to be seen whether the appeals court will uphold the lower court’s ruling or reverse it.

The case has also drawn attention to the need for clear and consistent regulation of the crypto industry. Lawmakers are currently working on legislation that would provide a comprehensive framework for the industry.

The Biden administration has also expressed interest in creating a national strategy for digital assets.

With the case now closed and the dust settling, all eyes turn to April 9, which will see a US House crypto hearing take place, potentially helping to further clarify regulations for digital assets.

The post US SEC Drops Appeal In Case Against Ripple, Closing 4+ Year Legal Battle appeared first on Benzinga.com.

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