The crypto market is surging following a major regulatory shift. According to CNBC, XRP jumped 10% to $2.49 after Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) has dropped its case against the company. This decision marks the end of a four-year legal battle that has shaped the industry’s regulatory landscape and fueled speculation about a broader shift in the SEC’s approach.

Ripple’s Long-Awaited Victory

Speaking at the Digital Assets Summit in New York, Garlinghouse reflected on the drawn-out legal fight, calling it a painful yet necessary battle for the industry.

“It’s been almost four years and about three months since the SEC originally sued us, certainly a painful journey in lots of ways,” Garlinghouse said. “I really deeply believed that we were going to be on the right side of the law and on the right side of history.”

The SEC sued Ripple in 2020, alleging that the company sold XRP as an unregistered security. Ripple scored a partial victory in 2023 when U.S. District Judge Analisa Torres ruled that XRP was not a security when sold to retail investors, though it was considered an unregistered security offering for institutional investors.

A Turning Point For Crypto Regulation?

Ripple’s legal triumph comes at a time when the SEC appears to be scaling back its aggressive stance on crypto enforcement. In recent weeks, the agency has dropped its case against Coinbase and closed investigations into Robinhood, Uniswap, Gemini, and Consensys without taking any enforcement action. Additionally, the SEC has reduced the size of its crypto enforcement unit and even declared that meme coins are not securities. These moves suggest a shifting regulatory approach that could reshape the future of the industry.

Further reinforcing this shift, the SEC has established a new crypto task force that is launching a roundtable series focused on redefining the security status of digital assets. This initiative could signal a shift toward greater regulatory clarity and a more constructive dialogue between the industry and regulators.

XRP Leads The Rally As Bitcoin Climbs

XRP, created by Ripple’s founders in 2012, has been one of the biggest winners of the post-election crypto rally, skyrocketing 385% since then and 18% this year alone. Ripple remains the largest holder of XRP, using the token for its cross-border payments business, which operates primarily outside the U.S.

The positive momentum surrounding Ripple’s legal victory has also extended to the broader cryptocurrency market, with Bitcoin seeing a price increase as well. According to the Economic Times, Bitcoin climbed 3.2% to $85,972, while Ethereum surged nearly 4% to $2,019. Over the past 24 hours, the global cryptocurrency market cap expanded by 3%, reaching $2.81 trillion.

What’s Next For XRP And Ripple?

While Ripple’s win is a major milestone, the broader debate over crypto regulation is far from over. However, with the SEC seemingly retreating from its hardline approach, the industry may be on the verge of a more stable and predictable regulatory environment — one that encourages innovation rather than litigation.

For now, XRP holders and the crypto community are celebrating a long-awaited victory, while all eyes remain on the SEC’s next move.