- SEC drops XRP lawsuit against Ripple, clearing XRP’s regulatory status.
- U.S. names XRP a strategic asset in its Crypto Reserve.
- XRP jumps 15% on the news, boosting investor confidence.
The United States Securities and Exchange Commission (SEC) has finally withdrawn its lawsuit case against Ripple Labs, a massive win for the cryptocurrency world.
The news comes barely a few days after President Donald Trump announced that XRP was listed as a strategic asset in the newly established U.S. Crypto Strategic Reserve, in addition to Bitcoin, Ethereum, Solana, and Cardano.
SEC drops XRP lawsuit
Ripple CEO Brad Garlinghouse greeted the decision. He is stating, “From day one, we knew the SEC had no case, and today, justice has won. XRP is not a security, and now we can focus our energies on the future of digital payments.”
The December 2020 lawsuit accused Ripple of selling unregistered securities, concealing XRP’s regulatory status for years. Its dismissal now provides long-awaited certainty and legitimacy.
The listing of XRP in the U.S. Crypto Strategic Reserve validates the efficacy of its cross-border settlement function. Garlinghouse termed the move as “a defining moment for digital assets in America,” meaning the capability it has to reshape the financial system.
The fact that XRP is part of the U.S. government’s plans is an indication that there is a change towards embracing digital assets in the economy.
XRP token surge
The ruling saw XRP prices increase by 15% in hours, and the traders greeted it with renewed confidence. Additional gains are anticipated by experts as institutional investment increases and regulatory uncertainty erodes.
The SEC ruling can be a precursor to increased regulation of crypto, leading to institutional investment. Simultaneously, U.S. government approval of XRP can invite other nations to follow suit, shaping the future of world finance.
With the case settled and state validation in place. Ripple is now poised to expand its economic links and solidify XRP as a leading player in the upcoming digital economy.
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