SEC Ends Ripple Appeals, Seeks Clear Crypto Regulation
After nearly five years of litigation in the SEC v. Ripple lawsuit over a $1.3 billion unregistered XRP offering, the SEC and Ripple have jointly withdrawn their appeals and agreed to cover their own fees. The final ruling classified retail XRP sales as non-securities, institutional sales as unregistered securities, and imposed a $125 million fine on Ripple.
With the case closed, SEC Chair Paul Atkins and Commissioner Hester Peirce have instructed staff to shift focus from litigation to developing a clear crypto regulation framework that balances innovation with investor protection. This regulatory shift aligns with lawmakers’ push to pass the CLARITY Act by September 30, aiming to codify digital assets as commodities or securities. Such clarity in crypto regulation could speed institutional cryptocurrency adoption and reduce market uncertainty.
Bullish
The resolution of the protracted SEC v. Ripple case removes a major source of legal uncertainty for XRP. In the short term, withdrawing appeals and imposing a defined fine has already triggered a positive market reaction as traders anticipate renewed demand. Over the long term, the SEC’s pivot to clear crypto regulation and the potential passage of the CLARITY Act will offer a transparent framework for digital assets. This regulatory clarity is expected to lower compliance hurdles and encourage institutional investors to allocate capital to XRP and other cryptocurrencies, supporting sustained bullish momentum.