CEO Brad Garlinghouse Just Sent XRP (Ripple) Soaring
Since the late afternoon yesterday, the price of XRP (CRYPTO: XRP) had zipped roughly 10% higher as of 10:16 a.m. ET. Ripple CEO Brad Garlinghouse announced in a video on X that the U.S. Securities and Exchange Commission (SEC) plans to drop its appeal in a long-standing lawsuit against Ripple, the company behind XRP.A little over four years ago, the SEC sued Ripple, Garlinghouse, and Co-Founder Chris Larsen, claiming that the parties sold XRP as an unregistered security back in 2013. The case was a big deal for the crypto community because it could set precedent on whether many cryptocurrencies would be deemed securities and therefore how much regulatory jurisdiction the SEC holds over these cryptocurrencies.In 2023, a federal judge ruled that when Ripple was sold to institutional investors it did qualify as a security. However, when it was sold to retail investors through exchanges, it was not a security because retail traders did not know the origin of the token. Following this ruling, the SEC appealed parts of the decision.Continue reading
Since the late afternoon yesterday, the price of XRP (CRYPTO: XRP) had zipped roughly 10% higher as of 10:16 a.m. ET. Ripple CEO Brad Garlinghouse announced in a video on X that the U.S. Securities and Exchange Commission (SEC) plans to drop its appeal in a long-standing lawsuit against Ripple, the company behind XRP.
A little over four years ago, the SEC sued Ripple, Garlinghouse, and Co-Founder Chris Larsen, claiming that the parties sold XRP as an unregistered security back in 2013. The case was a big deal for the crypto community because it could set precedent on whether many cryptocurrencies would be deemed securities and therefore how much regulatory jurisdiction the SEC holds over these cryptocurrencies.
In 2023, a federal judge ruled that when Ripple was sold to institutional investors it did qualify as a security. However, when it was sold to retail investors through exchanges, it was not a security because retail traders did not know the origin of the token. Following this ruling, the SEC appealed parts of the decision.
