SEC Cancels Lawsuit Against Ripple: Big Victory For The Crypto World

JAKARTA - Ripple Labs Inc., a blockchain-based payment company from America, recorded an important victory after the United States Securities and Exchange Commission (SEC) overturned lawsuits against CEO Brad Garlinghouse and founder Chris Larsen.

Ripple Labs in its announcement stated that the SEC had decided to stop the lawsuit without prejudice. This decision is an important milestone for the company that previously won in July when the judge stated that XRP sales in the secondary market were not investment contracts.

The case involves many aspects, with the SEC accusing Ripple executives of selling XRP which is considered an investment contract. The cancellation of this demand by Ripple is referred to as "an astonishing surrender by the government."

Chris Larsen, Ripple Executive Chair, said, "Today, we are justified legally and personally redeemed in our fight against disturbing attempts to abuse the rules for political agendas that harm the crypto world in America."

Even though these demands have been dropped, Ripple remains committed to fighting for regulatory clarity in the US.

SEC's Consecutive Defeat

This year has been an unfavorable year for the SEC in a fight with crypto companies. In addition to Ripple Labs' victory, Grayscale Investments also managed to win in an attempt to turn Grayscale Bitcoin Trust (BGTC) into Exchange Trade Fund (ETF) Bitcoin, after beating the SEC.

This victory forms strong precedents that can support other cryptocurrencies such as Cardano (ADA), Solana (SOL), Binance Coin (BNB), and Polygon (MATIC), which are also targets of the SEC. Expectations for approval of the Bitcoin spot ETF are also increasing, especially after the SEC's failure to appeal the decision.