Ripple CEO Reveals That SEC Ends Landmark Crypto Case

On March 19, 2025, Ripple Labs received a monumental victory as the U.S. Securities and Exchange Commission (SEC) announced that it was dropping its appeal in the long-standing legal battle over Ripple’s XRP cryptocurrency. This landmark decision has sent shockwaves through the crypto world, causing XRP’s market value to soar and signaling a significant shift in how cryptocurrencies might be regulated in the U.S.

A Long Legal Journey

The lawsuit between Ripple and the SEC started in December 2020, when the SEC filed a lawsuit accusing the blockchain company of conducting an unregistered securities offering by selling XRP tokens. The SEC argued that the blockchain company had raised a staggering $1.4 billion without registering the sale of XRP as a security, violating U.S. securities laws. But the company, on the other hand, has consistently maintained that XRP is more like a commodity than a security. Ripple’s CEO, Brad Garlinghouse, described the case as "the first major shot fired in the war on crypto," causing approximately $15 billion in losses for XRP holders as exchanges delisted the token.

In July 2023, U.S. District Judge Analisa Torres ruled that XRP, when sold on public exchanges, did not meet the legal definition of a security. However, she also ruled that XRP sales to institutional investors should have complied with securities regulations, leading to a $125 million fine, which was put on hold pending the company's appeal.

The SEC’s Retreat

On March 19, 2025, Garlinghouse announced via social media that the SEC had decided to withdraw its appeal, marking the official end of the four-year-long legal battle. “This case has ended, it’s over,” Garlinghouse declared, calling the SEC's decision a "long-awaited capitulation" and a "resounding victory" for the blockchain company. The decision also prevents Ripple from facing the $125 million fine, although its appeal against portions of the ruling remains pending. The company’s Chief Legal Officer, Stuart Alderoty, echoed Garlinghouse's sentiments, emphasizing that the company now has control over its next steps, including evaluating how to proceed with its cross-appeal.

XRP's Rollercoaster Ride

The SEC's withdrawal from the case had an immediate impact on XRP’s market value. The price surged nearly 10%, reaching around $2.52–$2.55 per token, as investors celebrated the removal of regulatory uncertainty. This resolution is not only significant for Ripple and its investors but also for the entire cryptocurrency industry. The court’s ruling establishes an important legal precedent, clarifying that digital assets like XRP, when traded on public exchanges, are not automatically classified as securities. This distinction could influence how other cryptocurrencies are regulated going forward, fostering a more stable environment for crypto businesses.

A Bright Future for Crypto

The SEC’s decision to drop its appeal signals a potential shift in the regulatory landscape for digital assets in the U.S. Under President Trump’s administration, the SEC has eased its stance on cryptocurrency regulation. In addition to withdrawing the case, the SEC has dropped lawsuits against exchanges like Coinbase and Kraken, and even indicated a resolution of civil fraud charges against crypto entrepreneur Justin Sun.

This shift aligns with Trump’s campaign promises to create a more crypto-friendly regulatory environment. The administration has nominated Paul Atkins, an attorney seen as supportive of the cryptocurrency sector, to replace Gary Gensler as SEC chair. If confirmed, Atkins’ leadership could further ease regulations, signaling a more favorable environment for crypto innovation in the U.S. Ripple itself has expressed optimism about these changes, with Garlinghouse emphasizing that the new regulatory environment allows the company to focus on business expansion, including potential acquisitions.

Time to Celebrate

For the company and its supporters, this marks a huge win, not just for the token but for the entire cryptocurrency sector. It sets an important precedent that could make it easier for digital assets to be treated fairly, with a legal framework that accommodates the unique nature of blockchain technology. While there’s still some work to be done with the company’s remaining appeals, the end of this long legal fight means that Ripple can now focus on its next steps, whether that’s continuing to grow partnerships or exploring new avenues in the crypto space. The court’s ruling gives hope to investors and companies alike that the U.S. could continue to be a place where innovation and regulation can coexist, helping pave the way for the future of digital assets. Unlock exclusive insights, expert opinions, and the latest industry trends—straight to your inbox. Subscribe today and stay informed!