The SEC dropped its lawsuit over Ripple’s $1.4B XRP sale, closing a battle that began in 2020. (Image Source: Shutterstock)The SEC's decision to drop its case against Ripple marks the end of a four-year legal battle that began in 2020, when the agency accused Ripple of raising $1.4 billion through unregistered securities sales of XRP. Ripple's CEO, Brad Garlinghouse, announced the resolution, stating, "I'm finally able to announce that this case has ended. It's over."
The conclusion of the lawsuit has had a positive impact on XRP's market performance. Following the announcement, XRP's price surged over 8%, reaching approximately $2.51. This increase propelled XRP to become the third-largest cryptocurrency by market capitalization, trailing only Bitcoin and Ethereum.
President Donald Trump's administration has taken a proactive stance toward integrating cryptocurrencies into the national financial framework. In a recent executive order, President Trump announced the creation of a strategic cryptocurrency reserve, which will include assets such as Bitcoin, Ethereum, Solana (SOL), Cardano (ADA), and XRP. This initiative aims to position the United States as a leader in the digital asset space.
Garlinghouse expressed confidence in XRP's inclusion, stating, "XRP was named by the President of Truth Social. There's gonna be a Bitcoin strategic reserve and a crypto stockpile that will include things like XRP."
With the legal uncertainties resolved, Garlinghouse anticipates the approval of an XRP exchange-traded fund (ETF) by the end of 2025. He highlighted that over ten applications, including those from firms like Bitwise and Franklin Templeton, are pending with the SEC. Garlinghouse stated, "I have immense confidence in the ETFs," referencing the success of XRP exchange-traded products in international markets.
The resolution of the SEC lawsuit has also opened discussions about Ripple's potential initial public offering (IPO). While Garlinghouse acknowledged that an IPO is a possibility, he emphasized that it is not a primary focus for the company at this time. He remarked, "Something is possible; it isn't a huge priority."
The recent developments have bolstered investor confidence in XRP and the broader cryptocurrency market. Analysts predict that XRP could reach new heights, with some forecasting a surge to $5 in the near future.
Furthermore, the U.S. government's strategic reserve initiative and the potential approval of XRP ETFs are expected to enhance institutional adoption of XRP. These measures could lead to increased liquidity and stability in the cryptocurrency market, fostering a more favorable environment for both retail and institutional investors.
The dismissal of the SEC lawsuit against Ripple, coupled with the anticipated inclusion of XRP in the U.S. strategic cryptocurrency reserve and the potential approval of XRP ETFs, signifies a transformative period for Ripple and the broader cryptocurrency industry. These developments underscore the growing acceptance and integration of digital assets into mainstream financial systems, paving the way for future innovations and adoption.
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