Ripple Declares Victory as SEC Drops XRP Lawsuit
Ripple CEO Brad Garlinghouse announced the Securities and Exchange Commission (SEC) will drop its high-profile lawsuit against the company, marking a pivotal moment for XRP and the broader cryptocurrency market.
Key Developments:
- The SEC's lawsuit alleged Ripple sold unregistered securities via XRP.
- Judge Analisa Torres previously ruled XRP is not a security, but the SEC appealed.
- Ripple's legal team confirmed the SEC is withdrawing its appeal.
Garlinghouse described the decision as "a resounding victory for Ripple, for crypto, every way you look at it."
Market Reaction to the News
XRP surged 10% following the announcement, reaching $2.55**. The overall crypto market also gained **0.8%**, pushing total capitalization to **$2.8 trillion.
👉 Discover how XRP's legal clarity impacts crypto ETFs
The Legal Battle: A Timeline
- December 2020: SEC sues Ripple, claiming XRP sales violated securities laws.
- July 2023: Judge Torres rules XRP is not a security in retail transactions.
- March 2025: SEC drops its appeal, ending the 4-year legal fight.
Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized the precedent set: "This landmark case strengthens the crypto industry’s position against regulatory overreach."
Political and Regulatory Shifts
The SEC’s decision aligns with the Trump administration’s pro-crypto stance, which aims to make the U.S. "the crypto capital of the planet." Under new leadership, the SEC has:
- Closed investigations against Coinbase, Robinhood, and Kraken.
- Accelerated reviews for XRP ETF applications.
Analysts predict XRP ETFs could attract:
- $800 million in first-week inflows (Northstake).
- $8 billion within a year (JPMorgan).
FAQs: What You Need to Know
1. Why did the SEC drop the lawsuit?
The SEC likely recognized the weak legal footing after Judge Torres’ ruling and political pressure to support crypto innovation.
2. How does this affect XRP’s price?
Short-term volatility is expected, but long-term growth is probable due to renewed institutional interest (e.g., ETFs).
3. Could the SEC reopen the case?
Unlikely. The appeal withdrawal suggests a definitive close, though regulatory scrutiny may shift to other areas.
👉 Explore XRP investment opportunities post-lawsuit
Looking Ahead: Ripple’s Next Steps
With legal clarity, Ripple plans to:
- Expand cross-border payment solutions using XRP.
- Partner with financial institutions for blockchain adoption.
- Advocate for clearer global crypto regulations.
Garlinghouse summed it up:
"The future is bright. Let’s build."