XRP surged 10% on March 19, 2025, following Ripple CEO Brad Garlinghouse's announcement that the U.S. Securities and Exchange Commission (SEC) is set to drop its appeal against the company. This news marks what Garlinghouse hailed as a "resounding victory" for both Ripple and the broader cryptocurrency community.
The long-standing legal battle between Ripple and the SEC, which has been underway since 2020, appears to be nearing its conclusion. According to Garlinghouse, the moment many had awaited is finally here. "This is it – the moment we’ve been waiting for. The SEC will drop its appeal," he stated in a post on X, celebrating the hopeful turnaround.
Reports from last week suggested that the SEC was indeed poised to drop its appeal, reinforcing the optimism surrounding the case. The SEC filed a lawsuit against Ripple in December 2020, accusing the company of raising $1.3 billion through unregistered sales of XRP tokens, which led to outsized implications for the market at that time.
In 2023, U.S. Judge Analisa Torres ruled that while Ripple did violate federal securities laws through institutional sales, its programmatic sales to retail exchanges did not breach these laws. This ruling was seen as a partial victory for Ripple amidst the broader legal strife. Consequently, Judge Torres imposed a $125 million fine against Ripple last August, and the SEC notably filed a notice of appeal shortly afterward.
The SEC's legal action against Ripple has sparked considerable fallout within the market, leading to an estimated $15 billion in losses for XRP holders, highlighting the stakes involved in these regulatory challenges. The ongoing case was characterized by Garlinghouse as the "first major shot fired in the war on crypto," marking a pivotal moment in how regulators approach cryptocurrencies.
During the period of turmoil, the SEC has also undergone significant changes, especially with the departure of former SEC Chair Gary Gensler, under whose leadership many lawsuits were filed. Since then, the Commission has chosen to drop several cases, including investigations into cryptocurrency exchange Coinbase. The development of new leadership, with Paul Atkins nominated to succeed Gensler, adds another layer of uncertainty as the Senate has yet to schedule a confirmation hearing.
As of now, the determination of whether XRP can once again thrive in a more favorable regulatory environment rests on the impending decision by the SEC to withdraw its appeal. The market’s current reaction indicates a noteworthy shift in sentiment. XRP's notable uptick in value serves as an immediate reflection of investor optimism regarding Ripple’s prospects.
The implications of this legal outcome extend beyond Ripple itself, as it could set a precedent affecting the cryptocurrency industry at large. The resolution of the SEC case is awaited with bated breath across the crypto landscape, as many stakeholders are deeply invested in the ongoing regulatory discourse.
Experts are keenly observing how this legal victory — should it solidify into a complete resolution — might influence investor confidence in tokens like XRP and reshape the trajectory of regulatory frameworks moving forward. The crypto markets could very well experience a rebound as clarity emerges from this protracted legal struggle.
In the broader context, the conclusion of this ongoing saga provides a glimpse into how regulators may approach future cases involving cryptocurrencies. Ripple has positioned itself uniquely within this narrative and stands at the forefront of discussions regarding compliance and innovation within the digital economy.
Moving forward, the conclusion of the SEC’s appeal against Ripple could serve as a crucial turning point, allowing XRP to reestablish itself among leading cryptocurrencies. As Garlinghouse aptly summarized, it marks the start of a new chapter for Ripple and potentially the whole crypto sector. Investors and market observers alike are left wondering what the final outcomes will herald for the future of cryptocurrency regulation.
