SEC Drops Ripple Case,Marking Shift in Crypto Regulation
In a brief video,Ripple’s Chief Legal Officer,Stuart Alderoty,shared that the U.S.Securities and Exchange Commission (SEC) has dropped its case against Ripple. This move reflects a significant change in how the SEC handles cryptocurrency enforcement.
Alderoty noted that the SEC has now dismissed all crypto-related cases in the U.S. He believes this decision acknowledges the crypto industry’s long-standing argument: enforcement actions should not occur without clear regulatory guidelines.
“You can’t enforce laws without first explaining what they are,” Alderoty stressed. The lack of clear laws and regulations regarding cryptocurrency in the U.S. has been a persistent issue.
Ripple has been at the center of a legal battle since December 2020, focusing on whether XRP should be classified as a security. With the legal hurdles now cleared, Ripple plans to refocus on business operations.
“We’re getting back to running our business,” Alderoty saeid. Ripple aims to collaborate with Congress to create smart crypto regulations that protect consumers and foster innovation.
In 2023, Ripple won a partial victory in court.Institutional sales of XRP were deemed legal, but public exchange sales violated securities laws. CEO Brad Garlinghouse promised to reclaim the $125 million set aside for potential penalties.
Garlinghouse, Ripple’s CEO, sees this as a win. He credits the new SEC leadership and White House for this positive outcome. The company intends to work with Congress to develop regulations that safeguard consumers and promote innovation.
The timing aligns with Ripple’s expansion plans. Ripple recently acquired Hidden Road for $1.25 billion.
This legal resolution comes as the SEC is under new leadership. Chair Paul Atkins, a Trump appointee, has withdrawn all crypto enforcement cases, signaling a new approach to cryptocurrency oversight.
