Ripple Labs wins as the SC leaves appeals on cryptographic regulation

Ripple Labs announced on Wednesday that the United States stock and values ​​commission (SEC) has officially withdraw its appeal against a judicial ruling on the regulation of cryptocurrencies. This marks an important legal victory for Ripple in its long battle with the regulator.

Initially, the SEC had appealed a decision made by the US district judge. UU. Analisa Torres in July 2023. The judge had ruled that Token XRP, when sold in public exchanges, did not qualify as security under federal law. However, the Court also determined that Ripple XRP sales worth $ 728 million to institutional investors violated securities laws. As a result, Ripple received a fine of $ 125 million, although the fine stopped temporarily while Ripple followed his own appeal.

After the withdrawal of the SEC, the CEO of Ripple, Brad Garlinghouse, expressed its satisfaction, describing it as “Rotunda Victoria” and a “long and expired surrender” by the regulator. Similarly, Ripple’s legal director, Stuart Alderoty, emphasized the company’s strength legal position, stating that they would evaluate the next steps in its cross appeal.

Although the SEC did not provide any comments on the matter, the decision indicates a broader change in the agency’s approach towards the regulation of cryptocurrencies. Since the beginning of President Donald Trump’s second term in January, the SEC has softened its position, choosing to dismiss the demands against prominent cryptographic hikers such as Coinbase and Kraken. In addition, the agency hinted at the possible resolution of its civil fraud case against Chinese businessman Justin Sun.

In an additional development, Trump nominated Paul Atkins, a legal expert considered favorable for the cryptocurrency sector, to preside over the SEC. Atkins will replace Gary Gensler, who faced criticism from the cryptographic industry during his mandate.

The demand of the SEC against Ripple began in December 2020, only weeks before Trump concluded his first mandate. With the appeal of the now abandoned regulator, Ripple Labs obtains a substantial advantage as he advances in the current legal process.

Also read: Cryptographic companies want the state of the National Bank: is this the end of decentralization?