Following the same lines as in Coinbase, Robinhood, Uniswap and Kraken, the new Stock and Value Committee (SEC) has decided to end the dispute against Ripple Labs, a company led by Brad Garlinghouse. This turn adds a new chapter to the strategies Trump and some of his collaborators have promised in the campaign, and now many people continue to encourage the universe.
The Ripple case was particularly complicated. Already at the end of February, Cryptootics cited a report by journalist Eleanor Terret to show a more aggressive and open position for the new SEC. The court order was still rippling, so he had to pay a fine of USD 125 million.. Additionally, after an appeal promoted by Gary Gensler in 2024, the case was passed to the Second Circuit, adding a new layer of difficulty to the process.
It should be noted that the conflict began in 2020 when XRP sued Ripple for claiming it was an unregistered value. Accurately, The unclear approach the SEC gave to values in 1933 has led to a setback in many industries. This case captured a major conflict between the sector and US regulators, and attracted a lot of attention as it emerged as a symbol of resistance.
However, with Donald Trump’s return to the White House and the designation of new officials, the SEC is under interim direction by Mark Weda and creates a cryptocurrency working group led by Commissioner Hester Perth. In a statement released in early February, Peirce expressed his team’s intentions and adopted a more balanced approach, He noted that ongoing lawsuits will be reviewed..
Finally, the agency decided to dismiss the case. This is the news that Brad Gerlinghouse celebrated at his final time through his X account. Demand “has been criticized for failings from the start«; He also mentioned the victory Ripple achieved throughout the process and the sanctions the SEC received for abuse.
The SEC’s $125 million fine imposed on Ripple, journalist Eleanor Terret commented that the company is still suing the sanctions. The company must decide whether they are fighting or are leaving everything.
This is one of the most important litigation in the history of cryptocurrency, and has far more impact than a single company. After four years of legal dispute, The results not only represent a victory for Ripple, but leave valuable lessons for the entire industry.. This process unveiled the weaknesses of current US regulations and the need for a clear regulatory framework, not only adapting to the cyptoactive framework, but also highlighted the important role that communities play in project resilience and growth.
Next, learn that the case leaves us.
- End of application regulations (Howey)
Application Regulation (Enforcement Regulation) is an approach in which regulators rely on sanctions and demands based on the laws in which they exist, instead of establishing clear, updated rules for the industry. Without considering the changes, the time has been brought to the new sector. Under the direction of Gary Gensler, the SEC applied this strategy in 1946, based on the Howey Test to determine whether it qualifies as a “value.”
Therefore, the Stock Exchange and Value Committee used this approach to demand companies such as Ripple, Coinbase, Uniswap and others. It led to contradictory failures and, in the end, to the dismissal of the case..
2. The need for concrete and transparent regulations for the sector
The Ripple incident underscored the urgent need for specific, clear regulations for the industry. Instead of continuing to apply the Securities Act of 1933 and Howie Test, A modern regulatory framework must be created that adapts to the cryptoactive properties. The updated approach avoids expensive, long-term litigation and provides legal certainty while fostering sector innovation and growth without sacrificing user protection.
3. Cryptoactive Classification is a still open topic
Cryptocurrency classification was a recurring issue in sector judgment. Without a clear and explicit classification of digital assets by the SEC, judges interpret cases differently, creating uncertainty that shakes the entire industry. Because there is no accurate standard, companies do not make clear whether assets are considered value (securities)put them at legal sanctions and risks.
This means that Michael Saylor has recently highlighted the importance of clarifying the classification of digital assets. In fact, Tycoon proposed a classification that distinguishes between digital raw materials (such as Bitcoin), digital currencies (such as stablecoins), digital values (linked to actions or bonds), and tokens with specific features. This differentiation allows for the development of better regulations for each type of asset. Instead of applying the same criteria as traditional value market management.
An important aspect that is often overlooked in discussions about cryptography regulation and classification is the fundamental role of the community. In this ecosystem, not only are companies and developers important, but also the users who support the project. The Ripple case is a clear example. Despite legal issues and regulatory uncertainty, his community continued to believe in technology and supported the project until the very end.. This level of commitment shows that beyond the failure of rules and judicial terms, the value of cryptocurrency lies in the trust of those who use it.
Today, Girlinghouse celebrates, there is no doubt, but there is also the XRP community.
(tagstotranslate) Cryptocurrency
