If you followed developments within the crypto scene over the last few years, you’d know that it has had a complicated relationship with the Securities and Exchange Commission. Notably, the commission has taken several high-profile crypto and blockchain companies to court, including Coinbase, Binance, and Ripple Labs, the parent company of XRP. Ripple Labs has perhaps had one of the most trying experiences with the SEC as there has been back and forth in court for years.
Now, Ripple Labs management and XRP investors can breathe the side of relief as CEO Brad Garlinghouse has confirmed that the commission will be dropping its lawsuit.
In response to this news, the value of XRP has gone up by over 10% and investors are excitedly stocking up on it. It is worth noting that 2025 was already pegged to be a good year for the token. Besides a possible resolution to its issues with the SEC, the token is also rumored to be getting its own spot ETF at some point, which would increase its value. This sort of market anticipation fuels not only a demand for tokens but also a demand for crypto wallets.
After all, if you’re investing in XRP in the long or short term, you want to get your hands on your crypto wallet. Not only can you store your cryptocurrency here but you can keep it safe from possible theft and transfer instantly. But what exactly has led to this change of heart on the part of the SEC?
Garlinghouse took to Twitter/X to share the news earlier today, stating, “The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.”
The lawsuit has been ongoing since 2020 when the company was accused of selling unregistered securities in the form of XRP. This not only highlighted the complicated situation with cryptocurrency and regulators but also brought into question whether cryptocurrencies were securities in the first place. In the five years since the lawsuit was first initiated, we’ve seen spot ETFs approved for two different cryptos, more visibility for the asset class as a whole, and continued use of XRP.
But these last few months have been especially significant because of the re-election of current US President Donald Trump. Trump not only positioned himself as the most pro-crypto candidate in the last election but since his inauguration, the SEC has become more lenient towards the industry. This started with the removal of the previous chairman Gary Gensler, who was notoriously hated by the industry. The current leadership of the SEC has done a lot of work on the legal front, ending court action against Coinbase just a few weeks ago.
With the latest development with Ripple Labs, it seems we’re entering a new era of crypto regulation. Hopefully, the benefits to XRP and the ecosystem as a whole will not be short-lived but instead, will allow for a less hostile environment for new and existing projects to thrive, with consumers benefiting the most.
