Ripple's XRP token has surged 10% after the firm declared victory in its four-year legal tussle with the Securities and Exchange Commission
Hailing a "resounding victory," Ripple CEO Brad Garlinghouse says the SEC will no longer pursue its appeal against the blockchain and crypto company.
The decision is another example of Washington's changing attitudes towards the industry since Donald Trump became president.
The SEC filed suit against Ripple, Garlinghouse and co-founder Christian Larsen in 2020, alleging that they "raised over $1.3 billion through an unregistered, ongoing digital asset securities offering".
In 2023, Ripple scored a partial victory when a judge ruled that the firm did not violate federal securities law by selling the XRP token on public exchanges and through algorithms.
However, Ripple's victory in the case brought by the SEC was only partial, with US district judge Analisa Torres also ruling that institutional sale of XRP did violate federal securities law.
Last year, the judge ordered Ripple to pay $125 million over this. Despite the hefty penalty, Ripple claimed the ruling was a victory, noting that the SEC had asked for $2 billion in penalties.
The SEC seemed to agree, filing a "notice of appeal" which is now being ditched.
Garlinghouse has responded to the SEC's retreat by attacking the regulator's previous leadership under chairman Gary Gensler, claiming: "Today is a victory - and a long overdue surrender by the SEC."
He continues: "They [the SEC] weren’t out to protect investors, they were out to intimidate and terrorize.
"The regulator whose primary purpose is to protect investors went all in on a non-fraud, victimless lawsuit and wiped out $15 billion of value from innocent XRP holders. The SEC was the market manipulator."
Last year, Ripple pumped $50 million into Fairshake, a federal super political action committee (PAC) backing pro-crypto candidates during the 2024 US elections.
Now, says Garlinghouse: "Thankfully, we have new leadership in the executive and legislative branches of our government. That leadership is actively seeking a rational and constructive way forward on crypto."
Ripple is not the only firm to benefit from a change in Washington. With Trump in office and the SEC under new leadership, in recent weeks the watchdog has dropped cases against Coinbase and Robinhood.
"This is an incredibly promising moment. Let’s come together. Let’s leave the tribalism behind," claims Garlinghouse.