SEC Drops Four-Year Legal Battle Against Ripple, CEO Announces

SEC Ends Ripple Lawsuit as Tornado Cash Sanctions Lifted and Coinbase Eyes Deribit Acquisition

  • SEC has ended its four-year legal battle against Ripple, according to CEO Brad Garlinghouse, following a partial victory for the company in 2023.
  • The U.S. Treasury has removed Tornado Cash from its sanctions list, reversing a controversial 2022 enforcement action against the crypto privacy tool.
  • Coinbase is reportedly in advanced negotiations to acquire Deribit, the leading platform for Bitcoin and ether options trading.

Regulatory pressures on the cryptocurrency industry appear to be easing as Ripple announces the end of its SEC lawsuit and the U.S. Treasury removes Tornado Cash from its sanctions list. These developments, alongside Coinbase’s potential acquisition of derivatives platform Deribit, signal a potential shift in the regulatory landscape for digital assets.

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Ripple CEO Brad Garlinghouse announced Wednesday the Securities and Exchange Commission has dropped its lawsuit against the company. “It’s over,” Garlinghouse declared in a video posted to X, triggering a 10% surge in XRP’s price. The SEC had sued Ripple in 2020, alleging the company raised $1.3 billion through an unregistered securities offering.

The case took a significant turn in 2023 when a federal judge ruled XRP was not a security when sold to retail investors, though it qualified as one when sold to institutions. While the SEC initially appealed this decision, Garlinghouse claims the agency is now abandoning the fight. Official confirmation from the SEC has yet to be issued.

This development comes amid a broader pullback by the securities regulator, which has recently dropped cases against Coinbase, Uniswap, Robinhood, OpenSea, Kraken, and ConsenSys. The SEC’s crypto task force is reportedly working toward establishing a more comprehensive regulatory framework for the industry.

In another significant regulatory shift, the U.S. Treasury has removed Tornado Cash from its sanctions list. The Ethereum-based privacy tool, which allows users to obscure transaction sources and destinations, was blacklisted in 2022 after authorities linked it to over $7 billion in laundered funds, including $455 million allegedly stolen by North Korea‘s Lazarus Group.

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Treasury Secretary Scott Bessent stated in a statement that the administration “remains deeply concerned” about North Korea‘s “state-sponsored Hacking and money laundering campaign” and would continue monitoring transactions potentially benefiting Hackers. The decision could impact pending legal proceedings against Roman Storm, one of Tornado Cash’s developers who still faces money laundering and sanctions violations charges.

Meanwhile, cryptocurrency exchange Coinbase is reportedly in “advanced talks” to acquire Deribit, according to Bloomberg. The companies have allegedly informed regulators in Dubai, where Deribit holds a license that would transfer to any buyer. If completed, the acquisition would represent Coinbase’s most significant move into the crypto derivatives market, which has traditionally been dominated by offshore platforms.

In related industry developments, Kraken is finalizing a $1.5 billion deal for a futures trading business, as reported by The Wall Street Journal. The SEC also recently held a crypto task force roundtable as the incoming Trump administration plans a regulatory revamp, according to Reuters. Additionally, crypto venture capital firm Haun Ventures is raising $1 billion for two new funds amid what Fortune describes as a “Trump-driven blockchain boom.”

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