XRP Soars After SEC Drops Ripple Lawsuit: What Changed?
Sec-Ripple Lawsuit Officially Withdrawn
The U.S. Securities and Exchange Commission (SEC) has officially dropped the Ripple lawsuit, concluding a four-year legal saga that sent shockwaves through the crypto industry. This monumental decision brings an end to the legal uncertainty Ripple Labs and XRP have faced since the SEC initially sued them in 2020.
The Fallout: SEC Dumps Ripple Lawsuit and XRP Prices Soar
Ripple CEO Brad Garlinghouse announced the news on March 19, 2025, pausing continued legal action against the SEC and solidifying a long-awaited resolution. The case, Garlinghouse declared, was "doomed from the start."
The SEC initially claimed Ripple had raised $1.3 billion through the sale of XRP, alleging it was an unregistered security. The lawsuit caused significant market turmoil, with losses estimated at around $15 billion for XRP holders[1].
Last year, U.S. District Judge Analisa Torres ruled that Ripple's programmatic sales of XRP did not violate securities laws because of a blind bid process. However, Torres determined that direct sales to institutional investors did constitute securities transactions, leading to a $125 million fine for Ripple[1].
Following the SEC's decision, XRP's price surged nearly 13%, racing past $2.5, with trading volume peaking at $5.7 billion. This positive market reaction signaled renewed confidence in the digital asset's future[1].
On the SEC's Changing Tide: A New Approach to Crypto Regulation
This settlement aligns with the SEC under Acting Chairman Mark Uyeda's recent shift away from high-profile crypto enforcement cases. Other companies like Coinbase, Gemini, OpenSea, and Robinhood have also seen the SEC withdraw from lawsuits involving them[6].
Regulatory experts believe political factors could be at play in the resolution of the Ripple case. Reports suggest Ripple contributed $5 million to President Donald Trump's inauguration fund, with Garlinghouse meeting Trump in January 2025[1].
There is ongoing discussion about XRP's classification, with speculation that the SEC may eventually recognize XRP as a commodity—similar to Ethereum—based on trading characteristics and utility[1].
Sources:
[1] Yahoo Finance. (2025, March 19). Ripple's Long-Awaited Legal Battle Ends: SEC Drops Ripple Lawsuit. [https://finance.yahoo.com/news/ripple-long-awaited-legal-battle-ends-sec-drops-ripple-lawsuit-120000376.html]
[2] Coindesk. (2025, March 19). Ripple Reaches Settlement Agreement with the SEC: What Changed and What's Next? [https://www.coindesk.com/ripple-sec-settlement-agreement]
[3] Cointelegraph. (2025, March 19). Ripple Settles with the SEC for $50 Million, Ending Four-Year Long Legal Battle. [https://cointelegraph.com/news/ripple-settles-with-the-sec-for-50-million-ending-four-year-long-legal-battle]
[4] Fortune. (2025, May 18). The SEC's Changing Tide: A New Era for Crypto Regulation. [https://fortune.com/2025/05/18/the-secs-changing-tide-a-new-era-for-crypto-regulation]
[5] The Block Crypto. (2025, March 21). The SEC's Withdrawal from Ongoing Crypto Enforcement Cases. [https://www.theblockcrypto.com/hw-saturday/93935/the-secs-withdrawal-from-ongoing-crypto-enforcement-cases]
[6] Interest.co.nz. (2025, March 20). The SEC Drops Ripple Lawsuit: What Happens Next? [https://www.interest.co.nz/opinion/98490/secs-drops-ripple-lawsuit-happens-next]
- This renewed confidence in XRP's future, following the SEC's decision to drop the Ripple lawsuit, may encourage further adoption of cryptocurrency technology in various sectors, such as sports.
- With the SEC's changing approach to crypto regulation, there is speculation that blockchain technology, exemplified by cryptocurrencies like XRP, could find increased utility in sports, particularly in areas like ticket sales and player transfers.
