- Ripple’s CEO, Brad Garlinghouse, achieved a monumental victory as a U.S. judge ruled in favor of Ripple, determining that XRP did not violate securities laws when sold to retail investors, marking a significant turning point for both Ripple and the broader crypto industry.
- Garlinghouse’s resilience during the legal battle, the celebratory “Proper Party” that followed, and the crucial role played by the supportive XRP Army in reshaping perceptions and regulatory outcomes in the crypto landscape.
In a stunning turn of events, Ripple’s CEO, Brad Garlinghouse, has secured a monumental victory in the legal battle against the U.S. Securities and Exchange Commission (SEC).
The outcome not only vindicates Ripple and XRP but also marks a pivotal moment for the entire cryptocurrency space. Garlinghouse’s resilience and the unwavering support of the XRP Army have played a crucial role in reshaping the narrative surrounding XRP.
The Proper Party: A Celebration of Triumph
Months before the rain-soaked night at New York’s Hammerstein Ballroom, Garlinghouse had promised a celebration – “The Proper Party” – if Ripple emerged victorious in the SEC lawsuit. True to his word, the event unfolded in September, transforming the historic venue into a sea of XRP enthusiasts adorned in merchandise that defiantly proclaimed, “XRP is not a security, 7.13.23.”
Judge Analisa Torres’ ruling on July 13, 2023, echoed the sentiments of the XRP Army, determining that Ripple had not violated securities laws when selling XRP to retail investors. The market responded with a brief but impactful doubling of XRP’s price, signifying a symbolic triumph for Ripple, Garlinghouse, and the broader crypto community.
From Legal Turmoil to Resurgence: The Ripple Journey
The road to victory was far from smooth. Since the SEC’s sudden lawsuit announcement on December 22, 2020, Garlinghouse found himself in a personal legal battle that seemed unjust and perplexing. Despite cooperating fully, Ripple faced immense challenges, spending approximately $150 million over two-and-a-half years to defend itself. The legal turmoil hampered XRP’s growth, leading to its removal from major exchanges like Coinbase.
The SEC’s actions, purportedly aimed at protecting investors, ironically harmed XRP holders and hindered the token’s market performance. However, Ripple and XRP quietly persevered, focusing on innovation and forging partnerships. Ripple’s launch of a central bank digital currency (CBDC) platform and collaborations with global entities showcased its determination to redefine the future of finance.
Garlinghouse’s 2023 Triumph: A Turning Point for Crypto
Brad Garlinghouse’s personal victory came in October when the lawsuit against him was dropped, followed by the SEC’s unsuccessful appeal of the July ruling. This resounding win carries broader implications for the crypto industry. The legal precedent set by XRP not being deemed a security for retail buyers challenges the SEC’s approach and potentially offers relief to numerous projects stuck in regulatory limbo.
In a recent phone interview, Garlinghouse reflected on the significance of Ripple’s win, stating, “Had Ripple not won this case, and had the allegations against me and Chris not been dismissed, that emboldens the SEC to be even more aggressive for more projects.” He asserted that Ripple’s success punctured holes in SEC Chairman Gary Gensler’s core arguments, signaling a potential shift in the regulatory landscape.
The XRP Army: Unsung Heroes of Victory
While Garlinghouse rightfully takes center stage in this comeback narrative, credit must also be extended to the XRP Army, a community that played a pivotal role in reshaping Ripple’s legal battle. The Hammerstein Ballroom event saw Garlinghouse acknowledging the dark times of 2020 and crediting a “ray of sunshine” named John Deaton.
John Deaton, a key figure in the XRP community, rallied supporters to petition the judge, challenging the SEC’s narrative and emphasizing that XRP holders were distinct from Ripple. This collective effort may have influenced Judge Torres’ decision and, consequently, Ripple’s legal triumph.
Ripple’s Comeback and Crypto’s Future
Brad Garlinghouse’s triumph in 2023 symbolizes more than a personal victory; it marks a turning point for Ripple, XRP, and the broader cryptocurrency industry.
The XRP Army’s resilience and collective action showcase the power of community support in shaping the future of decentralized finance. As crypto enthusiasts celebrate this legal victory, it remains to be seen how Ripple’s success will influence regulatory attitudes toward other projects in the evolving landscape of digital assets.