The lengthy regulatory proceedings launched in 2020 by the SEC against Ripple had become something of a symbolic battle in the cryptocurrency sector. Five years later, the two parties have agreed to drop the case.
Ripple vs SEC: the end of a long-running dispute
Ripple originally wanted to create a bridge between banks and the cryptocurrency sector using its XRP token. This was a highly innovative strategy in 2012, but it came up against the full force of the US Securities and Exchange Commission (SEC) when Gary Gensler took over as its chairman. Since then, Ripple’s CEO Brad Garlinghouse has filed numerous lawsuits in an effort to resist pressure from the regulatory body. In fact, the rule of the game in this field was generally to pay a (very) large fine in order to move on.
This strategy of resistance has clearly paid off. This is particularly true given that the recent arrival of Paul Atkins at the head of the SEC marks a decisive turning point in the field, which is now much more open and favorable to cryptocurrencies. As proof, the two protagonists in this case recently decided to find common ground in order to put an end to the proceedings once and for all. However, this type of decision must be accompanied by official documents that seal the agreement in principle. That has now been done.
Now, back to business
The information has just been made public on the X network by Ripple’s chief lawyer, Stuart Alderoty. The two parties in this case have just filed a joint dismissal of their pending appeals, signifying the effective and official end of this case.
Following the Commission’s vote today, the SEC and Ripple have formally filed a motion with the Second Circuit to withdraw their appeals. It’s over… now, back to business.
Stuart Alderoty
This historic announcement for Ripple has had a clear effect on the price of XRP, which is the best performer in the top 10 over the last 24 hours with an 11% increase. Could this be an opportunity to reach a new all-time high beyond the $3.65 recorded on July 18?
In any case, the previous record set in 2018 now seems to be a thing of the past with this SEC proceeding. This is an opportunity for Ripple to finally focus fully on its core business, as banking institutions are entering the cryptocurrency sector en masse.
