BANGKOK (AP) — The price of XRP jumped more than 8% Thursday after the CEO of cryptocurrency company Ripple said U.S. regulators have dropped its four-year-old case against the company.
The Securities and Exchange Commission sued Ripple and two of its executives in late 2020 after they raised $1.4 billion by selling XRP crypto coins.
The SEC under the Biden administration held that digital assets like cryptocurrences should be regulated like securities, such as stocks, and should be considered commodities like gold or oil. Securities generally face stricter regulations.
The Trump administration is easing those rules.
CEO Brad Garlinghouse that the SEC overstepped its authority in alleging that Ripple violated securities laws by selling XRP without a securities registration.
“I’m finally able to announce that this case has ended,” Garlinghouse said in a video posted on X. “It’s over.”
The SEC has not confirmed its decision to withdraw the case against Ripple, yet other crypto companies have already announced that the SEC under the Trump administration has dropped cases against them. Trump vowed during his presidential campaign to ease restrictions in the cryptocurrency market, a significant change compared with the last several years under Gary Gensler, the head of the SEC in the Biden administration.
In February, the cryptocurrency exchange Coinbase said the SEC had dropped its case against it after it was targeted in a lawsuit alleging it was operating as an unregistered securities platform and brokerage service. Ditto for the cryptocurrency platform Robinhood.
The SEC also recently asked a federal court to pause ongoing litigation against Binance, the world’s largest cryptocurrency exchange, because leadership was rethinking previous enforcement actions.
Trump has pledged to make the U.S. a world leader in cryptocurrencies and the industry scored some early wins after his return to the White House. That includes the repeal of an SEC accounting rule and an executive order by the president directing a working group to study and propose changes to crypto regulations.
Trump signed an executive order two weeks ago establishing a government reserve of bitcoin, a key marker in the cryptocurrency’s journey towards possible mainstream acceptance.
The crypto industry spent heavily to help elect Trump and other crypto-friendly lawmakers and is eager to cement its influence in politics and mainstream financial systems.
Garlinghouse, a Trump supporter, caused waves when he said he’d like to see a U.S. government crypto reserve include various digital assets rather than just bitcoin, the world’s most popular cryptocurrency. That idea is a nonstarter for many bitcoin diehards.
The SEC was due to hold a series of roundtables on regulation of crypto assets, beginning with one on Saturday at its headquarters in Washington, DC.
Early Thursday, the value of Ripple rose to more than $2.50.
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