XRP surged 10% Wednesday after Ripple CEO Brad Garlinghouse announced the U.S. Securities and Exchange Commission will abandon its appeal against the cryptocurrency company, ending a protracted legal battle that shaped crypto regulation.
"This is it – the moment we've been waiting for. The SEC will drop its appeal," Garlinghouse posted on X. "A resounding victory for Ripple, for crypto, every way you look at it."
The price jump occurred during U.S. morning trading hours, providing immediate market validation of what many industry observers consider a pivotal development for cryptocurrency regulation. Garlinghouse's announcement confirmed rumors from last week suggesting the years-long dispute was nearing resolution.
"I'm finally able to announce that the case has ended; it's over," Garlinghouse said in a video attached to his social media post. The legal confrontation began in December 2020 when the SEC sued Ripple over allegations of conducting a $1.3 billion unregistered securities offering.
The regulatory action, which Garlinghouse previously characterized as "the first major shots fired in the war on crypto," reportedly resulted in $15 billion in losses for XRP holders. Market data from multiple trading platforms confirmed the token's sharp price increase following the announcement.
"We're now closing a chapter in crypto history," Garlinghouse declared. The executive further emphasized his belief that "it's time to make the United States the crypto capital of the world," suggesting broader implications for digital asset regulation.
The SEC's decision to withdraw its appeal comes after nearly four years of litigation that created significant uncertainty in cryptocurrency markets. Industry participants have closely monitored the case as a potential precedent for how digital assets might be classified under existing securities laws.
Market analysts noted that XRP's price movement demonstrated immediate investor reaction to the development, with trading volumes increasing substantially across major exchanges following Garlinghouse's announcement.
For Ripple and its supporters, the SEC's retreat represents vindication after years of maintaining that XRP should not be classified as a security. The company has consistently argued for regulatory clarity rather than enforcement actions as the appropriate approach to cryptocurrency oversight.