Ripple Labs has achieved a landmark victory as the U.S. Securities and Exchange Commission (SEC) officially dropped its lawsuit against the company. This decision concludes a four-year legal battle that has significantly impacted the cryptocurrency industry.
Ripple’s CEO, Brad Garlinghouse, announced the news on March 19, 2025, emphasizing the importance of this resolution for Ripple and the broader crypto ecosystem.
The lawsuit, initiated in December 2020, accused Ripple of conducting unregistered securities offerings through the sale of XRP tokens. The SEC alleged that Ripple raised $1.3 billion without proper registration, leading to regulatory uncertainty for the company and the industry.
However, a pivotal ruling in July 2023 determined that XRP sold on secondary markets was not a security, while sales to institutional investors were classified as unregistered securities.
The resolution of this case has broader implications for the cryptocurrency market. Ripple’s victory sets a precedent for how digital assets are classified and regulated in the United States. The SEC’s decision to drop its appeal reflects a shift in its enforcement strategy, moving toward collaboration and engagement with the crypto industry.
This change aligns with the agency’s recent withdrawal from other high-profile cases involving major crypto firms like Coinbase and Kraken.
Following the announcement, XRP’s price experienced a significant surge, rising by approximately 13% to $2.49. This increase highlights renewed investor confidence in Ripple and its native token. The market’s positive reception underscores the importance of regulatory clarity for digital assets.
Brad Garlinghouse described the outcome as a victory for the industry and a turning point in the regulatory landscape. He emphasized that Ripple’s legal triumph validates the company’s business model and its commitment to innovation. Garlinghouse also expressed optimism about the future, highlighting plans for expansion and the potential for clearer regulatory guidelines in the crypto sector.
Shogun Lin
