 
 
The momentum has shifted in the years-long battle between top crypto companies and protocols and the U.S. Securities and Exchange Commission (SEC) under the new Trump administration.
The SEC, under the leadership of pro-crypto Chairman Paul Atkins, has indicated a growing focus on drafting a proper crypto regulatory framework after wrapping up one of the crypto industry’s long-running legal brawls.
The SEC and Ripple jointly dropped their appeals in the high-profile XRP lawsuit, ending a nearly five-year legal battle that has clouded the token’s outlook since December 2020.
The landmark legal resolution is a “welcome development” that makes sure “minds once occupied with litigation now can concentrate on creating a clear regulatory framework for crypto,” quipped longtime crypto advocate SEC Commissioner Hester Pierce, aka “Crypto Mom”.
With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table. “Our focus should be on building a clear regulatory framework that fosters innovation while protecting investors,” said Chair Atkins in response to Pierce’s post.
 
The SEC alleged that Ripple had participated in a $1.3 billion unregistered securities offering via the sale of the XRP cryptocurrency, suing the company and two top executives in December 2020. Much to the delight of the XRP Army, Judge Analisa Torres ruled in July 2023 that XRP was not a security when sold to retail investors.
She, however, found that hundreds of millions of dollars of XRP sold to institutional investors were unregistered securities sales. Ripple was slapped with a $125 million fine in August 2024.
That fine, secured in escrow, will be transferred to the U.S. Treasury following the dismissal of the appeals. A permanent injunction prohibiting Ripple’s institutional sales of XRP remains in effect.
The conclusion of the Ripple-SEC case comes as lawmakers advance the long-anticipated CLARITY Act, which aims to establish a clear regulatory framework for digital assets in the U.S., distinguishing cryptocurrencies as either commodities or securities. The passage of this legislation is expected to accelerate the institutional adoption of cryptocurrencies.
Source: https://zycrypto.com/sec-to-focus-on-clear-crypto-regulatory-framework-after-ripple-case-closure-chairman-paul-atkins-opines/