The world of cryptocurrency is about to close one of its most infamous legal sagas. Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have ended their case after a long dispute. The SEC v. Ripple case has raised significant questions around recognizing digital assets.
On Thursday, a court document presented to the United States Court of Appeals for the Second Circuit revealed that both parties agreed to withdraw their appeals and pay their own costs — closing the book on a fight that started in December 2020, when the SEC accused Ripple of raising $1.3 billion from the sale of unregistered XRP securities.
A landmark ruling declared that XRP is not a security with respect to retail investors. This ruling came from Judge Analisa Torres in July 2023. The ruling did state, however, that institutional sales of XRP were securities. In August 2024, Ripple also paid a fine of $125 million.
From Courtroom Battles to Policy Blueprints
According to a ruling by the U.S. court system, the SEC’s case against Ripple was regarded as a landmark case. Hester Peirce, a commissioner of the SEC, hailed the move as a “welcome development,” stating the agency can now devote its energy to forming a clear cryptocurrency regulatory framework.
The SEC Chair Paul Atkins shared that sentiment in his post on X, saying the focus must now move toward policy-making that fosters innovation while safeguarding investors.
“With an end to this chapter, we get to go from the courtroom to the drafting table,” Atkins said.
The CLARITY Act Showdown
The timing is critical. Certain U.S. lawmakers are now looking to finalize the Digital Asset Market Clarity Act, also known as the CLARITY Act. The aim of this act is to lay down the definition of how the U.S. digital asset market works. Republican leaders are trying to get the bill passed by September 30, though not without pushback.
House Financial Services Committee ranking member Maxine Waters and other prominent Democrats have branded the legislation “dangerous” as it could weaken oversight. Waters also criticized the Anti-CBDC Surveillance State Act, which aims to block the creation of a U.S. central bank digital currency.
Waters warned that Republicans are doubling down by fast-tracking what she called a “dangerous package of crypto legislation.”
Why This Matters for Crypto’s Future
The Ripple lawsuit has become a crucial legal and symbolic case for the cryptocurrency industry. Washington, D.C. is now trying to balance investor protection, innovation, and market stability in the wake of this decision.
With the legal battles behind, the next fight moves to Capitol Hill, where the future of U.S. cryptocurrency regulation — and the nation’s role as a blockchain leader — will be decided.
