Ripple Wins Major Victory As SEC Ends Lawsuit Over XRP

The cryptocurrency landscape witnessed a seismic shift on March 19, 2025, when Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) is ending its long-running lawsuit against the company. In a video posted on social media platform X, Garlinghouse triumphantly declared, "I’m finally able to announce that this case is over." This pivotal announcement heralds a new chapter for the digital payments company and its flagship token, XRP.

The SEC's decision to drop its appeal is particularly noteworthy given the tumultuous journey of the case that began in December 2020. Back then, the SEC accused Ripple of selling XRP as an unregistered security, a move that sent shockwaves through the cryptocurrency community. Garlinghouse’s announcement coincided with a significant market reaction; the price of XRP soared by 10%, hitting a peak of $2.55, while Bitcoin briefly crossed $84,000.

The legal battle has not only captured the attention of investors but has also become a symbol of broader regulatory tensions in the crypto space. In 2023, a federal judge ruled that XRP could only be classified as a security when sold to institutional investors, a decision that was poised to redefine how similar cryptocurrencies are treated under U.S. law. However, the SEC, led by former chair Gary Gensler under the Biden administration, positioned the agency as an enforcer of a regulatory crackdown on the crypto industry, arguing that most cryptocurrencies fell under the classification of unregistered securities.

Since President Donald Trump took office in January 2025, there has been a marked shift in the regulatory atmosphere. Trump's administration has signaled intentions to foster a more favorable environment for digital assets, distancing itself from the stringent measures adopted during Biden’s presidency. This shift is exemplified by the SEC’s recent actions; in addition to dropping the Ripple appeal, the agency has suspended other investigations targeting prominent crypto exchanges including Coinbase and Binance, which were sued within a day of each other in mid-2023.

The renewed video announcement from Garlinghouse illuminated a striking turn in the cryptocurrency narrative; after years of intense scrutiny, Ripple's fortunes appear poised to rise. The relationship between Ripple and Trump has been particularly noteworthy; Trump openly supported crypto during his campaign, and Ripple emerged as a significant political donor during the recent congressional election cycle. Garlinghouse even indicated plans for Ripple to donate $5 million worth of XRP to the inauguration festivities.

As the court docket for the SEC’s appeal against Ripple did not immediately reflect the decision to drop the case, questions loom about the implications for the wider crypto industry. Hester Peirce, a pro-crypto SEC commissioner, commented, “Our law is not supposed to be a game of gotcha.” In a broader context, she suggested the agency should reassess its tactics and engage more proactively with industry stakeholders, stating, "Let’s just take a step back, revisit things, and get people’s input, now that people know they can come in and talk to us." This signals a potential thawing of the icy relationship between regulators and the crypto sector.

The end of the Ripple lawsuit is not just a victory for the company but also represents a critical moment for the crypto industry as a whole. Crypto companies have invested over $130 million supporting pro-crypto candidates in the 2024 elections, a testament to their commitment to reshaping regulatory dynamics. Trump’s pro-crypto stance, alongside the SEC’s changing leadership and strategy, indicates that a new era of regulatory engagement may be dawning.

The market is responding. The surge of XRP and Bitcoin prices following the announcement reflects a bullish investor sentiment, eager for stability and clarity in the tumultuous sea of cryptocurrency regulations. While the SEC’s withdrawal from its lengthy legal battle with Ripple is a singular event, it carries significant weight for what lies ahead in terms of regulatory oversight and the future operations of crypto companies. Investors are left with a cautiously optimistic outlook as the industry anticipates further developments.

As the dust settles from this momentous decision, the focus will now shift towards how the regulatory framework evolves under this new administration. Will the SEC continue to relax its grip on the digital currency landscape, or will it find a balance in establishing necessary oversight while encouraging innovation? For now, with the Ripple case officially closed, all eyes are on how this precedent may shape the future of cryptocurrency regulation in the U.S.