After nearly four and a half years of legal battles, the Securities and Exchange Commission (SEC) has officially dropped its appeal against Ripple Labs and its controversial cryptocurrency XRP. This landmark decision ends one of the most watched legal fights in crypto history and signals a dramatic shift in the regulatory landscape.

XRP prices jumped 11% on the announcement, reflecting market relief at the conclusion of this drawn-out saga that has been years in the making. While it has struggled to capture crypto investors’ hearts to add to its fiercely loyal “XRP Army” over the years due to claims of a lack of centralization and its founders dumping coins on holders, there was broad agreement that Ripple’s fate would set an important precedent for the entire industry and rival chains like Solana, Cardano and Ethereum. 

Ripple certainly expected a favorable outcome, filing a trademark application for crypto custody and wallet services at the end of February. 

SEC vs Ripple: Final Chapter Closes

On Wednesday, March 19, 2025, Ripple CEO Brad Garlinghouse announced at the Digital Asset Summit in New York that the SEC would no longer pursue its appeal against the company. The case, which began in December 2020, centered on whether XRP sales constituted unregistered securities offerings.

“It’s been almost four years and about three months since the SEC originally sued us, certainly a painful journey in lots of ways,” Garlinghouse said. “I really deeply believed that we were going to be on the right side of the law and on the right side of history.”

Ripple Chief Legal Officer Stuart Alderoty celebrated the news on social media, stating “Ripple is now in the driver’s seat and we’ll evaluate how best to pursue our cross appeal. Regardless, today is a day to celebrate.”

The SEC has declined to comment on the decision.

Why This Victory Matters for Crypto

Coming shortly after Coinbase scored a similar victory against the federal securities regulator, Ripple’s win fundamentally alters the regulatory framework for cryptocurrencies in the United States by:

• Establishing that XRP tokens sold on public exchanges do not qualify as securities
• Creating precedent that other crypto projects can reference
• Signaling the SEC’s retreat from aggressive enforcement under the Trump administration

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, explained why this is particularly significant for XRP: 

“The bet you’re making on XRP, it’s a B2B-oriented chain, and they were simply unable to execute on that strategy with the sort of the SEC on top of them.”

Unlike more crypto-native projects that could continue development despite regulatory uncertainty, XRP’s core business model was effectively frozen during the litigation.

Market Response

The market’s reaction has been swift and decisive:

• XRP price surged over 10% to over $2.58 following the announcement
• The token has gained more than 385% since the presidential election
• XRP is up 18% year-to-date, outperforming many other major cryptocurrencies

These gains reflect not just relief over the case’s conclusion but optimism about Ripple’s ability to now pursue its business strategy without regulatory interference. The price chart moved upward like a rocket taking off, with traders rushing to buy XRP in anticipation of renewed business growth across international markets.

New Era for US Crypto Regulation Continues

This decision doesn’t stand alone. Under President Trump’s administration, the SEC has rapidly reversed course on crypto enforcement:

• Ended its case against Coinbase
• Closed investigations into Robinhood’s crypto unit, Uniswap, Gemini, and Consensys
• Scaled back its dedicated crypto enforcement unit
• Declared meme coins are not securities
• Launched a new crypto task force focused on defining the security status of digital assets
• Paul Atkins, Trump’s nominee for SEC chair, is widely seen as supportive of the crypto industry – a stark contrast to former chair Gary Gensler, who pursued aggressive enforcement actions against crypto companies.

“The entire space, you know, in my view, should be revalued and reconsidered in this new regulatory era. And I’m quite frankly surprised it hasn’t happened yet in the market. I think it will happen,” said Hougan.

What This Means for Investors

For crypto investors, the implications are substantial:

1. Regulatory clarity: The decision provides a clearer framework for determining which crypto assets might be classified as securities
2. Reduced risk: Major exchanges that delisted XRP can now reconsider listing the token without fear of SEC action.
3. Business expansion: Ripple can fully execute its cross-border payments strategy, potentially increasing XRP utility and value.
4. Broader market effects: Other tokens facing similar questions may benefit from the precedent.
   

Garlinghouse is already looking ahead: “Ripple has invested over $2 billion in investments and acquisitions across the crypto landscape, and some of those have nothing to do with XRP because if crypto does well, I fundamentally believe Ripple will do well.”

Future Ramifications

The long-term impact of this decision extends beyond Ripple and XRP:

• For exchanges: U.S. crypto exchanges that delisted XRP can now reconsider without regulatory concerns.
  
• For startups: New crypto projects have clearer guidance on token classification and how to avoid securities violations.
  
• For international competitiveness: The U.S. may regain ground lost to more crypto-friendly jurisdictions during the previous regulatory regime.
  
• For institutional adoption: Clearer rules may encourage more traditional financial institutions to engage with cryptocurrency.
  

This decision doesn’t mean all regulatory concerns are resolved. Ripple still faces its own appeal of Judge Torres’ ruling that institutional sales of XRP violated securities laws. However, the regulatory landscape has undeniably shifted in a direction favorable to the industry.

Looking Forward

With regulatory headwinds subsiding, Ripple can focus on its core business of facilitating cross-border payments. The company’s technology aims to make international transfers faster and cheaper than traditional banking systems, a market worth trillions annually.

Industry watchers will be monitoring several developments:

• How quickly Ripple can expand its payment corridors and partnerships
• Whether major U.S. exchanges will relist XRP
• How the precedent affects other ongoing or potential SEC cases
• The impact on XRP adoption and utility in real-world financial systems

As Garlinghouse noted, this marks “the beginning of a new chapter” for both Ripple and the broader crypto industry. The company now has the opportunity to prove its business model in the market without regulatory interference.

For an industry that has been fighting for legitimacy and clear rules, the SEC’s retreat represents a significant victory and potentially the start of a more constructive relationship between crypto innovators and U.S. regulators.

SEC vs. Ripple: A Brief History

The legal battle between the SEC and Ripple began on December 21, 2020, when the regulator filed a lawsuit alleging Ripple and executives Brad Garlinghouse and Chris Larsen conducted an unregistered securities offering by selling XRP. This bombshell announcement caused XRP’s price to plummet and led to mass delistings from major U.S. exchanges.

• The case quickly centered on a critical question: is XRP a security like stocks or a currency/commodity like Bitcoin? The SEC argued XRP sales constituted investment contracts under the Howey Test, while Ripple maintained XRP was a currency used for international payments.
• A pivotal moment came with the “Hinman documents” – internal SEC communications regarding a 2018 speech by then-Director William Hinman declaring Ethereum not a security. Ripple fought to access these documents, believing they would reveal inconsistent SEC positions on cryptocurrency classification.
• In July 2023, Judge Analisa Torres delivered a split decision: XRP sales on public exchanges did not constitute securities transactions, but Ripple’s direct sales to institutional investors violated securities laws. This partial victory for Ripple sent XRP prices soaring and established an important distinction between different types of crypto sales.
• The SEC appealed the ruling while Ripple was fined $125 million in August 2024. The regulatory environment shifted dramatically after the 2024 election, with the Trump administration taking a pro-crypto stance. In March 2025, the SEC finally surrendered, dropping its appeal and effectively acknowledging XRP’s non-security status when sold on public exchanges. This resolution, after four years of litigation, marks a watershed moment for cryptocurrency regulation in the United States.

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