After more than four years of legal battles, the U.S. Securities and Exchange Commission (SEC) is withdrawing its lawsuit against Ripple, according to the company's CEO, Brad Garlinghouse. The report has sent XRP soaring over 10% as investors welcomed the long-awaited resolution to the case that has clouded the token's future since 2020.

According to CoinMarketCap data, XRP was trading at $2.53 at the time of this publication. This represents a 12% and 18% increase in the daily and weekly charts, respectively.

XRP is currently ranked 3rd with a market capitalization of over $148 billion

The Lawsuit That Shook the Crypto Industry

Ripple CEO Brad Garlinghouse has termed the latest development as a "resounding victory," highlighting a turning point for the cryptocurrency industry.

"This is it – the moment we've been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let's build," Garlinghouse commented on X.

The SEC initially sued Ripple in December 2020, alleging the company had raised $1.3 billion through the unregistered sale of XRP, which the agency classified as a security.

A major turning point came in 2023 when U.S. Judge Analisa Torres ruled that while Ripple had violated securities laws in institutional sales, its programmatic sales to retail investors did not break regulations.

The decision was seen as a partial win for Ripple, leading the SEC to file a notice of appeal. However, the latest development confirms the agency is abandoning its appeal, effectively bringing the case to a close.

A Shift in Regulatory Approach

The SEC's decision to drop the case comes amid broader shifts in regulatory enforcement. In recent months, the Commission has also backed down from investigations into major crypto companies, including Coinbase and Kraken.

The departure of former SEC Chair Gary Gensler and the nomination of Paul Atkins to lead the agency under the Trump administration may have played a role in the SEC's retreat.

XRP price soars on the daily chart, source: CoinMarketCap

Ripple's CEO suggested the lawsuit was never truly about investor protection but rather an attempt to stifle the crypto industry. The lawsuit's conclusion fuels speculation about the possibility of an XRP-based exchange-traded fund (ETF).

What's Next for Ripple and XRP?

Following the announcement, XRP's trading volume also surged, reflecting renewed investor confidence. According to CoinMarketCap, XRP's trading volumes have soared 97% to $7 billion in the past day.

Ripple's legal victory could strengthen its standing in the market, allowing it to focus on business expansion rather than legal battles. However, whether the token will be the next Bitcoin remains uncertain.

Source: Finance Magnates