SEC Drops Case Against Ripple Labs

The Cryptocurrency sector has awoken to big news with the U.S. Securities and Exchange Commission (SEC) officially dropping its lawsuit against Ripple(XRP), the company behind the XRP token. This decision brings the sectors biggest legal battle that began in December 2020 to an end while bringing clarity to XRP's regulatory status and causing a slight price hike.

Background

The SEC initiated legal proceedings against Ripple in December 2020 alleging that the company's sale of XRP constituted an unregistered securities offering. This lawsuit sent ripples throughout the crypto community. Because it raised questions about how digital assets are classified under U.S. law. Ripple consistently refuted the SEC's allegations, asserting that XRP should not be categorized as a security.

In July 2023 a pivotal moment occurred when U.S. District Judge Analisa Torres ruled that XRP was not a security when sold on public exchanges to retail investors. However, the court also determined that XRP sales to institutional investors violated federal securities laws leading to a USD 125 million fine imposed on Ripple. The SEC filed a notice of appeal following this decision prolonging the process and causing uncertainty.

On March 19, 2025 Ripple CEO Brad Garlinghouse announced that the SEC had decided to withdraw its appeal and effectively ending the lawsuit. In a video address Garlinghouse expressed his relief and stated that this outcome was a victory not just for Ripple but for the entire cryptocurrency industry. He criticized the SEC's approach stating that the regulator had overstepped its bounds in its enforcement actions against crypto companies.

XRP Price Surge

The resolution of the lawsuit had an immediate impact on XRP's market performance. Following the announcement, XRP's price surged by approximately 13% reaching nearly USD 2.56. This price movement reflects renewed investor confidence and the lifting of regulatory uncertainty that had previously withheld XRP's growth.

The conclusion of the SEC's lawsuit against Ripple is seen as a defining moment for the broader cryptocurrency sector. As it sets a legal precedent regarding the classification of digital assets and may influence how other cryptocurrencies are regulated in the future. Market analysts suggest that this outcome could pave the way for more favourable regulatory frameworks, encouraging innovation and investment in the crypto space.
Some are tipping a return to the previous price point by the company but it is still a wait and see approach.

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Posted Using INLEO