Ripple’s XRP token soared 10% after the company declared victory in its four-year battle with the U.S. Securities and Exchange Commission (SEC). CEO Brad Garlinghouse hailed the outcome as a “resounding victory”, confirming that the SEC has abandoned its appeal against Ripple.
The legal dispute began in 2020 when the SEC accused Ripple, Garlinghouse, and co-founder Christian Larsen of raising $1.3 billion through unregistered securities offerings. In a 2023 ruling, a judge partially sided with Ripple, determining that public sales of XRP did not violate federal securities law, though institutional sales did. As a result, Ripple was ordered to pay $125 million, a fraction of the $2 billion initially sought by regulators.
Garlinghouse has framed the SEC’s decision to withdraw as a long-overdue concession, criticizing the agency’s previous leadership under Gary Gensler. “The SEC wasn’t protecting investors; they were market manipulators, wiping out $15 billion of XRP holder value,” he stated.
Ripple has actively lobbied for pro-crypto policies, investing $50 million into Fairshake, a political action committee backing crypto-friendly candidates. With Donald Trump in office, regulatory shifts are already evident, as the SEC has dropped cases against Coinbase and Robinhood in recent weeks. Garlinghouse sees this as a pivotal moment for crypto, urging the industry to “come together and leave the tribalism behind.”