SEC Case Against XRP Dismissed: XRP CEO Accuses SEC of Market Manipulation

Brad Garlinghouse, the CEO of Ripple, has revealed that the United States Securities and Exchange Commission (SEC) is abandoning its appeal in the ongoing legal dispute concerning XRP.

The lawsuit, initiated in December 2020, alleged that Ripple sold XRP (XRP) as an unregistered security.

In a declaration posted on X, Garlinghouse denounced the lawsuit as a futile endeavor by the SEC to regulate the crypto industry through enforcement. He characterized the case as "doomed from the start" and framed it as part of a larger government effort to "pick winners" in the crypto space.

Garlinghouse also highlighted that Ripple's legal battle established a precedent, clearing the path for more precise regulatory guidelines.

Ripple had previously achieved a partial victory when a United States judge ruled that XRP was not a security in secondary market sales. However, the court also found that sales to institutional investors breached securities laws.

Although the SEC initially indicated its intention to appeal, it has now decided to withdraw the case entirely, Garlinghouse announced.

As of now, the SEC has not officially confirmed this news.

SEC harmed investors

Garlinghouse criticized the SEC's approach under Chairman Gary Gensler, arguing that the regulator harmed investors instead of safeguarding them. He pointed to the $15 billion in market value that was eradicated when the SEC first filed the lawsuit, labeling the regulator a "market manipulator."

This case has been closely monitored as a significant legal confrontation for the crypto industry. Ripple's triumph could impact how regulators address digital assets in the future. Garlinghouse addressed the broader crypto world, stating that this outcome is a step toward making the U.S. a more welcoming environment for crypto innovation.

Upon hearing the news, XRP surged and is currently trading at $2.55.