In a monumental turn for the cryptocurrency industry, Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against Ripple. This development concludes a four-year legal battle that had significant implications for Ripple and its native cryptocurrency, XRP.
On March 20, 2025, XRP's price skyrocketed more than 10% shortly after the announcement, reflecting an overwhelmingly positive sentiment in the crypto market. As of today, XRP is trading at A$3.93, a 9.2% increase from the previous day and an impressive 11.1% rise over the past week. Trading volumes surged, with A$16 billion worth of XRP exchanged within a mere 24 hours.
The lawsuit, initiated by the SEC back in December 2020, claimed that Ripple had sold XRP as an unregistered security. However, this narrative shifted dramatically when Judge Analisa Torres ruled in July 2023 that XRP is not inherently a security. Following this ruling, the SEC had attempted to appeal but ultimately decided to abandon the case, allowing Ripple to continue its operations without legal uncertainty.
Following this legal news, XRP’s price quickly leaped to US$2.52, with peaks touching US$2.56 during trading. Investors reacted positively, viewing the SEC's retreat as a watershed moment for Ripple and the entire digital currency landscape.
Garlinghouse referred to the lawsuit as a failed effort of “regulation by enforcement,” stressing optimism for future legislative frameworks that could promote more clarity in the cryptocurrency sector. "This is a significant victory for Ripple and the broader crypto industry," he remarked, emphasizing how vital it is for regulatory bodies to set clear guidelines moving forward.
The market's reaction was not limited to just XRP. Bitcoin (BTC), which has maintained its position above US$85,000, experienced a momentary surge to an intraday high of US$87,421 following the Federal Reserve's decision to leave interest rates unchanged. The central bank's stance has invigorated investor sentiment, with BTC's trading volume skyrocketing, reaching US$37.19 billion in just 24 hours.
Further, Ethereum (ETH) witnessed impressive gains, breaking the US$2,000 barrier and peaking at US$2,064 — an 8% rise in the last 24 hours. This surge followed a successful breakout from an ascending triangle pattern, indicating a bullish sentiment among investors.
Meanwhile, Solana's native token (SOL) has also gained traction, rising by 8% to $133.44, driven by increasing investor interest as the total value locked (TVL) on Solana soared to its highest levels since July 2022, showing a 10% increase over the last month.
This flurry of activity was part of a larger market reversal, highlighted by key altcoins such as Cake (CAKE), Bonk (BONK), and SUI climbing by about 5%. Furthermore, the collapse of a legal burden on Ripple has sparked increased discussions surrounding the potential for spot ETFs, with analysts suggesting that institutional capital could flow into the market at an unprecedented scale.
In the wake of the SEC's announcement, a notable shift was indicated in XRP market dynamics, with 14,890,000 XRP liquidated within 24 hours, responding to the news of the lawsuit's ending. Across the board, the total liquidation amounted to a staggering $36.96 million.
Long traders experienced liquidations totaling $18.21 million, compared to $18.75 million in losses for short traders, showcasing how fluid trading can be in such volatile markets. This situation seems indicative of traders balancing out recent price fluctuations and perhaps bracing for further developments.
Adding to the momentum, Bitnomial launched the first XRP futures contract shortly after the SEC's announcement, underscoring the possibility of continued product development surrounding XRP, particularly with clearer regulatory oversight beginning to take shape.
The Ripple saga's conclusion has far-reaching implications for the crypto market. With the successful navigation of regulatory obstacles, XRP is now seen as a catalyst for renewed interest from institutional players and developers looking to explore decentralized applications (DApps) on the XRP Ledger.
If the current bullish momentum persists, some analysts predict XRP could see its price reach $5 within this year, depending significantly on the evolution of regulatory clarity and institutional investment flows. Traders, however, are advised to exercise caution, as market fluctuations often precede broader trends.
The broader cryptocurrency market remains buoyed by these developments, with Bitcoin holding steady, Ethereum surpassing $2,000, and Solana showing increased strength. Investors keenly await further clarity on regulatory frameworks as the market strives to assert its position in the financial ecosystem.
