XRP surges 8% following announcement that SEC has dropped case against Ripple’s CEO

XRP experienced a significant 8% surge in its price after Ripple’s CEO made an announcement regarding the dismissal of the Securities and Exchange Commission’s (SEC) case against the cryptocurrency. The legal battle between the SEC and Ripple began in 2020 when the SEC filed a lawsuit against Ripple and two of its executives for raising $1.4 billion by selling XRP coins.

Under the Biden administration, the SEC contended that digital assets, including cryptocurrencies, should be regulated as securities and thus subjected to stringent regulations akin to stocks. However, the Trump administration demonstrated a more lenient approach towards these regulations.

Ripple CEO Brad Garlinghouse expressed his belief that the SEC had overstepped its boundaries by accusing Ripple of violating securities laws through the sale of XRP without proper registration. In a video statement, Garlinghouse revealed, “I’m finally able to announce that this case has ended. It’s over.”

While the SEC has yet to confirm the dismissal of the case, several other cryptocurrency companies have already announced similar outcomes with the SEC under the Trump administration dropping cases against them. This shift reflects Trump’s commitment to creating a more accommodating regulatory environment for the cryptocurrency market, contrasting with the stricter regulations during Gary Gensler’s tenure as the head of the SEC under the Biden administration.

Following this trend, Coinbase, a popular cryptocurrency exchange, disclosed that the SEC had resolved its lawsuit regarding unregistered securities operations and brokerage services. The same outcome was reported by Robinhood, another digital asset platform. Additionally, the SEC requested a pause in ongoing litigation against Binance, the world’s largest cryptocurrency exchange, as it reevaluated previous enforcement actions.

Trump’s vision for the United States to become a global leader in cryptocurrencies has gained momentum since his election, with early achievements including the repeal of an SEC accounting rule and the establishment of a government reserve of Bitcoin through an executive order. Garlinghouse, known for his support of Trump, proposed expanding this reserve to encompass various digital assets rather than solely consisting of Bitcoin, a suggestion that faced resistance from staunch Bitcoin enthusiasts.

The cryptocurrency industry’s efforts to secure a favorable regulatory landscape extended to political lobbying and support for cryptocurrency-friendly lawmakers. Garlinghouse’s revealed alignment with Trump’s policies, coupled with the industry’s strategic political involvement, showcases a proactive approach to shaping the future of cryptocurrencies within mainstream financial systems.

The surge in XRP’s value to over $2.50 on Thursday following the announcement reflects the market’s positive response to the shift in regulatory dynamics. As the cryptocurrency landscape continues to evolve in response to changing government policies and regulatory frameworks, industry players are poised to adapt and capitalize on new opportunities in the rapidly growing digital asset ecosystem.