Unexpectedly, the SEC withdrew some of its major allegations against Ripple's leadership, leading to a positive market reaction. In response, Bitcoin gained momentum, aiming for the $30,000 threshold. Though it currently hovers around $29,800, this shift reflects growing confidence in the crypto market.
However, Bitcoin isn't the only one thriving; Ripple (XRP) celebrated a legal victory with a solid 8% growth, surpassing the $0.50 mark.
The original court confrontation between the SEC and Ripple started in December 2020 and has since been the subject of many discussions within the crypto community. The latest development came on October 19th when it was announced that the companies "agreed to dismiss the lawsuit with prejudice". In layman's terms, we shouldn't expect any more heated court meetings regarding this case.
This decision also means that two key figures of Ripple, Brad Garlinghouse and Chris Larsen, can finally breathe a sigh of relief.
Brad Garlinghouse, CEO of Ripple, expressed his feelings emotionally. According to him, the SEC was unnecessarily fixated on one issue, rather than protecting American consumers and businesses. It's worth noting that this legal process cost millions of dollars, raising questions about the SEC's decision-making efficacy.
The question of "Why?" still hangs in the air. Why did the SEC decide to withdraw the charges? Katherine Kirkpatrick, legal chief of Cboe Digital, has a theory. According to her, the main objective of the SEC might be to challenge the July decision claiming that XRP isn't a security.
Regardless of the reason, this development is certainly a boon for all crypto enthusiasts. And as the current market growth indicates, this story is far from over.
This surprising turn in the legal tug-of-war between the SEC and Ripple serves as further evidence of the dynamism of the crypto market. As digital currencies gain increasing legitimacy and traditional financial institutions start integrating them into their operations, such milestones measure the progress and maturity of the industry.
As the crypto market continues to grow and gain more attention on the global stage, we can expect that legal and regulatory battles will continue to play a pivotal role in its evolution.