SEC case against Ripple seems to have come to a close but crypto rules still not set

The U.S. Securities and Exchange Commission (SEC) has dropped its appeal in the landmark case against Ripple, marking a significant victory for the crypto firm but leaving broader regulatory clarity unresolved.

The SEC initially sued Ripple in 2020, alleging unregistered securities sales of XRP. In July 2023, Judge Analisa Torres ruled that XRP was not a security when sold on secondary markets but fined Ripple $125 million for institutional sales.

The SEC appealed this mixed ruling, but under Acting Chair Mark Uyeda, the agency has since retreated from aggressive crypto enforcement, dropping cases against Coinbase, and others.

Ripple CEO Brad Garlinghouse called the SEC’s decision a “resounding victory,” while Chief Legal Officer Stuart Alderoty noted the firm is now “in the driver’s seat” to resolve remaining issues.

The SEC’s withdrawal leaves Judge Torres’ ruling intact but does not set binding legal precedent for other crypto firms.

Ripple is considering appealing the $125 million fine and a five-year “bad actor” prohibition on fundraising tied to institutional XRP sales. Garlinghouse stated the firm may seek to “clean up” these aspects or negotiate a settlement.

Legal experts emphasize that the case does not establish precedent for other crypto projects. Brian Grace, Metaplex’s general counsel, clarified that Judge Torres’ ruling was fact-specific and non-binding.

The crypto industry still lacks clear guardrails. While the SEC’s retreat under Uyeda signals a softer stance, lasting change requires congressional action.

Crypto advocates hailed the outcome, but lawyers warned that the SEC’s policy remains unclear until Paul Atkins is confirmed as chair.

Industry groups like the Blockchain Association urge Congress to pass stablecoin and market structure bills, which could finalize by August or year-end.

The SEC’s withdrawal aligns with a broader de-escalation under the Trump administration, which has prioritized crypto-friendly policies.

However, experts stress that lasting regulatory clarity depends on congressional action rather than agency enforcement trends.

So this victory on the part of Ripple removes immediate legal pressure, the crypto industry remains in a regulatory gray area, relying on legislative progress for definitive frameworks.

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