Ripple Supporters Euphoric, Believing to be History Makers, as SEC's Lawsuit Against Ripple Concludes
The long-running legal battle between Ripple Labs Inc. and the Securities and Exchange Commission (SEC) has come to an end, marking a significant milestone in the crypto industry. After nearly five years, the SEC officially closed its dispute with Ripple on Thursday.
The legal battle was a landmark event, not only for Ripple but for the entire crypto industry, as it concerned not only the status of XRP but also the regulation of cryptocurrencies globally.
The SEC had alleged that Ripple had participated in a $1.3 billion unregistered securities offering via the sale of XRP. However, Ripple denied the allegations, asserting that XRP is not a security. This belief has been reinforced by a 2020 blog post from Ripple CEO Brad Garlinghouse, which has become a mantra for the XRP Army.
The XRP Army, a community of XRP supporters, grew significantly through social media and initiatives from influential figures within the community. They saw the SEC's lawsuit against Ripple as a call to arms, rallying together to support Ripple and XRP. The Army believes they are on the "right side of history" following the SEC's decision.
The SEC's closing of its legal dispute against Ripple Labs Inc. confirms a partial validation of the XRP Army’s belief that they are on the right side of history. The court upheld the key part of Ripple’s position: XRP sold on public exchanges to retail buyers does not meet the definition of a security.
However, the ruling did find that XRP sold directly to institutional investors was an unregistered security sale, so Ripple was fined $125 million. The case's conclusion after nearly five years is widely seen as a landmark decision, clarifying regulatory treatment of digital assets. XRP’s classification in retail markets is a significant win for Ripple and the crypto industry in general.
As part of the settlement terms, Ripple agreed to certain restrictions on institutional sales of XRP going forward. Despite this, the XRP Army believes they emerged from the legal battle with Ripple stronger, planning to rally their troops and push XRP to great heights.
John Deaton, who provided legal support on behalf of 75,000 XRP holders in the SEC lawsuit, shared the feeling of being on the right side of history among XRP Army members. The outcome of the case marks an important historical precedent favoring XRP’s legitimacy in the crypto ecosystem but does not represent an absolute, unilateral vindication of all XRP supporters’ claims.
After almost five years of aiding Ripple's legal battle, the XRP Army is taking a well-deserved rest. However, their spirit remains unbroken, ready to continue their mission to support XRP and the crypto industry.
[1] SEC and Ripple drop appeals in XRP case, making judge's ruling final (Reuters, 2023) [2] Ripple to pay $125 million to settle SEC lawsuit over XRP sales (CNBC, 2023) [3] Court rules XRP sales to retail buyers do not meet security definition (Coindesk, 2023) [4] Ripple-SEC case outcome clarifies regulatory treatment of digital assets (The Block, 2023)
- The XRP Army, a community of XRP supporters, believes that the SEC's decision to drop appeals in the XRP case validates their position of being on the right side of history.
- The settlement between Ripple Labs Inc. and the SEC stipulates certain restrictions on institutional sales of XRP going forward, as part of the agreement.
- The court's ruling in the Ripple-SEC case clarified that XRP sold on public exchanges to retail buyers does not meet the definition of a security, which is a significant win for the crypto industry.
- John Deaton, who provided legal support for 75,000 XRP holders in the SEC lawsuit, shares the feeling of being on the right side of history among XRP Army members, but acknowledges that the case outcome does not represent an absolute, unilateral vindication of all XRP supporters’ claims.
