- The U.S. Securities and Exchange Commission (SEC) has withdrawn its appeal against Ripple Labs, concluding a legal battle that began in December 2020
- Ripple’s CEO, Brad Garlinghouse, announced the SEC’s decision, marking a significant victory for the cryptocurrency industry.
- Following the announcement, XRP’s price surged by over 10%, reflecting renewed investor confidence.
The U.S. Securities and Exchange Commission (SEC) has officially dropped its case against Ripple Labs, ending a legal dispute that started over four years ago. Ripple’s CEO, Brad Garlinghouse, confirmed the much-anticipated news yesterday, highlighting it as a pivotal moment for the crypto sector. The news was expected following the SEC dropping many other high-profile crypto cases, but its case against Ripple was always the posterchild for the previous administration’s anti-crypto approach.
Four Years of Fighting
Garlinghouse first warned that SEC charges were coming at the tail end of 2020, calling it a “parting shot” by outgoing SEC chair Jay Clayton. The agency did indeed file shortly afterwards, alleging that the company’s sale of XRP tokens constituted an unregistered securities offering. This action led to widespread uncertainty in the cryptocurrency market, with the understanding being that a defeat for Ripple would open up the rest of the sector to huge scrutiny.
Ripple achieved a partial victory in 2023 when a federal judge ruled that XRP tokens were not securities when sold on public exchanges. However, Judge Annalisa Torres also determined that Ripple’s direct sales of XRP to institutional investors violated securities laws, resulting in a $125 million fine. The SEC initially sought to appeal the retail decision, but under the stewardship of crypto-friendly acting chair Mark T. Uyeda, it has decided to add the XRP case to the litany of other cases it has dropped recently.
Garlinghouse celebrated the news on X:
This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.
The future is bright. Let’s build. pic.twitter.com/7WsD0C92Cm
— Brad Garlinghouse (@bgarlinghouse) March 19, 2025
The conclusion of this case has had immediate market implications. XRP’s price surged by over 10%, reaching approximately $2.56, as investors reacted positively to the news. This outcome not only benefits Ripple but also sets a precedent for how cryptocurrencies are regulated in the United States, potentially influencing future regulatory approaches.
Tide Turning
Ripple’s Victory occurs amid a broader shift in the regulatory landscape. Since President Donald Trump began his second term, the SEC has retreated on crypto oversight, ending civil lawsuits against crypto exchanges Coinbase, Kraken, and Binance, as well as NFT giant OpenSea. This evolving environment may encourage more innovation and investment within the cryptocurrency industry.
