Ripple CEO Brad Garlinghouse announced that the Ripple SEC case was over, with a significant victory of a blockchain infrastructure based in San Francisco. The development reflects the changing regulatory environment of President Donald Trump, and the administration quickly relaxed the enforcement measures for cryptocurrency companies.
The US Securities and Exchange Commission (SEC) has pursued RIPPLE since 2020 and claimed that the sales of XRP have formed an unregistered securities proposal. But GarlingHouse confirmed that the incident is now in a Bloomberg television interview on Wednesday.
Legal battle with Ripple’s SEC
The Ripple SEC case began in December 2020, claiming that the SEC illegally raised funds by selling XRP without proper registration. RIPPLE has been in a lawsuit for more than four years and has spent more than $ 150 million for legal costs to defend itself.
In the central 2023 ruling, the US local judge Analisa Torres found that XRP fell according to the securities law when the XRP was sold to institutional investors. The SEC appealed to the decision, but now it has decided to withdraw the case as part of a wide range of regulations.
XRP prices surge in news
Following the announcement that the Ripple SEC case was signed, the price of XRP surged to 15%, reaching $ 2.59 on Wednesday. Since Bitcoin (BTC) and Ether Leeum (ETH), XRP, the third largest cryptocurrency, has increased almost 400% since Trump’s election in November.
Analysts suggested that the end of this incident provides a deregulation clarity for XRP, which can potentially encourage additional institutional adoption and package the Exchange-Traded Funds associated with TOKEN.
Ripple considers the following legal phase
Despite the favorable results, Ripple is still facing a fine of $ 125 million in escrow. Stuart Alderoty, the chief legal director of Ripple, said that he is “advised” when the company measures the weight of the case or whether or not to pay a fine.
This decision can affect the potential plan to expand Ripple’s future operation and blockchain infrastructure offering.
Earn ripples, not IPO
The Ripple sec case is now focusing on the argument. Garlinghouse confirmed that reporting IPOs (IPO) is not the top priority. Instead, Ripple plans to acquire another blockchain infrastructure company to strengthen its position in the rapidly evolving encryption space.
Garlinghouse said, “We will look at other things that are blockchain infrastructure companies.
The SEC alleviates encryption crackdown under Trump
The end of the Ripple SEC case is part of the extensive trend that the SEC suspends or dismisses some of the famous legal measures for the encryption company, depending on the Trump administration. A noteworthy example is Coinbase Global Inc. (NASDAQ: COIN) and Binance Holdings LTD. and Robin Hood Markets Inc. (NASDAQ: HOOD) and the threat of legal action against other decentralized platforms such as Uniswap Labs and OpenSea.
Trump’s professional creepto enters a more friendly regulatory environment and relieves the digital asset industry, which was undergoing a thorough investigation by President Joe Biden’s administration.
Ripple’s political impact on encryption
Ripple has also played a notable political role in these changes. The company was a major donor during the last parliamentary election and donated $ 5 million worth of XRP to Trump’s inauguration festival. Ripple executives, including Garlinghouse and Alderoty, took pictures with the Trump of Mar-A-Lago and emphasized the close relationship with the company’s new administration.
Trump’s investigation and actions were praised by Digital Asset Community members, and Ripple was deployed as one of the main beneficiaries of this policy shift.
What is the next step in Ripple and XRP?
When the Ripple Second case concludes, Ripple is suitable for pursuing a growth agenda that focuses on arguments and expands the effects of blockchain infrastructure. The regulatory clarity provided by the decision of the SEC can also accelerate the institutional interest in XRP and open the way of the potential XRP -centered ETF that can follow the success of Bitcoin and Etherrium ETF.
As Ripple explores the next step, this breakthrough case concludes a new era in the regulation of the US encryption regulations that can thrive in more receptive regulatory frameworks.
Main image: FreePik
See the immunity clause