Bangkok (AP) – XRP saw an increase of over 8% on Thursday following the announcement by Ripple’s CEO that the Securities and Exchange Commission (SEC) has dropped the legal case that had been ongoing for four years. The SEC had initiated a lawsuit against Ripple and two of its executives in late 2020 over the sale of $1.4 billion worth of XRP crypto coins.
Under the Biden administration, the SEC had taken the stance that digital assets like cryptocurrencies should be subject to regulations similar to securities, such as stocks, with a focus on treating them as commodities like gold or oil, which are subject to stricter regulations. However, the Trump administration has been working to ease these regulations.
Ripple’s CEO, Brad Garlinghouse, expressed 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 message posted online, Garlinghouse announced, “I’m finally able to announce that this case has ended. It’s over.”
While the SEC has yet to confirm the withdrawal of the case against Ripple, other cryptocurrency companies have already revealed that the SEC, under the Trump administration, has dropped legal actions against them. The shift in regulatory approach is seen as a significant change from the previous years under Gary Gensler, who leads the SEC in the Biden administration.
The cryptocurrency exchange Coinbase and platform Robinhood have also reported the dismissal of cases brought against them by the SEC. Additionally, the SEC has sought a pause in the litigation against Binance, the world’s largest cryptocurrency exchange, to reconsider past enforcement actions.
Trump has expressed intentions to position the U.S. as a leader in the cryptocurrency sector, leading to early victories for the industry following his return to the White House. This includes the repeal of an SEC accounting rule and an executive order for a working group to review and suggest changes to crypto regulations.
In a recent executive order, Trump established a government reserve of bitcoin, marking a significant step towards potential mainstream acceptance of cryptocurrencies. The crypto industry has invested heavily in supporting Trump and other crypto-friendly policymakers, aiming to solidify its role in politics and financial systems.
Garlinghouse, who supports Trump, proposed the inclusion of various digital assets in a U.S. government crypto reserve, challenging the dominance of bitcoin among crypto enthusiasts. This idea has faced resistance from staunch bitcoin supporters.
The SEC had planned a series of roundtable discussions on crypto asset regulations, with the first one scheduled for Saturday at its headquarters in Washington, DC.
Early Thursday, Ripple’s value surged to over $2.50.
