Ripple CEO Brad Garlinghouse has announced that the U.S. Securities and Exchange Commission is dropping its appeal in the long-running legal battle over XRP.
The case, which began in December 2020, accused Ripple of selling XRP (XRP) as an unregistered security.
In a statement posted on X, Garlinghouse called the lawsuit a failed attempt by the SEC to regulate the crypto industry through enforcement.
He described the case as “doomed from the start” and framed it as part of a broader government effort to “pick winners” in the crypto space.
He also noted that Ripple’s legal battle set a precedent, paving the way for clearer regulatory guidelines.
Ripple had previously won a partial victory when a U.S. judge ruled that XRP was not a security in secondary market sales. However, the court also found that sales to institutional investors violated securities laws.
While the SEC initially signaled its intention to appeal, it has now decided to drop the case entirely, Garlinghouse said.
The SEC has not officially confirmed this news.
SEC harmed investors
Garlinghouse criticized the SEC’s approach under Chairman Gary Gensler, arguing that the regulator harmed investors rather than protecting them.
He pointed to the $15 billion in market value that was wiped out when the SEC first filed the lawsuit, calling the regulator a “market manipulator.”
The case has been closely watched as a key legal battle for the crypto industry. Ripple’s victory could influence how regulators approach digital assets in the future. Garlinghouse spoke to the larger crypto world in general, saying that this outcome is a step toward making the U.S. a more favorable environment for crypto innovation.
XRP spiked on the news and is currently trading at $2.55.
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