Ripple Sees Major Victory As SEC Drops Lawsuit

Brad Garlinghouse, the CEO of Ripple, declared the U.S. Securities and Exchange Commission (SEC) doesn’t want to proceed with its appeal in the long-running legal battle over XRP.

The SEC sued Ripple over an apparent $1.3 billion unregistered securities offering, a turning point in regulatory realities for cryptocurrencies in the U.S. At the time of publication, XRP is trading at $ 2.476505 with a current market cap of $146.60 billion. Many investors are closely following the XRP news today to capitalize on opportunities and potentially contribute to community awareness.

Ripple’s CEO shared the news on X, the app formerly known as Twitter, on March 19, proclaiming: “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.” After Gary Gensler stepped down from the Commission in January, many cases have been dropped, including the investigation into Coinbase, which didn’t file registration for its crypto asset staking-as-a-service initiative.

In December 2020, The SEC Filed A High-Profile Enforcement Action Against The Crypto Company

On December 22, 2020, the SEC filed a lawsuit against Ripple, along with its two chief executives, Bradley Garlinghouse and Christian Larsen, claiming violations of federal securities laws. The Commission’s complaint argued that Ripple sold roughly 15 billion units of its digital token, XRP, for more than $1.3 billion without registering its investment contracts with the agency. Garlinghouse and Larsen supposedly aided and supported Ripple. To be more precise, the SEC maintained that XRP was a security and not a commodity or other type of asset.

Ripple asserted that XRP was a store of value and a medium of exchange, so it didn’t have to be registered under the Securities Act of 1933. In July 2023, U.S. District Judge Analisa Torres concluded that XRP was an investment contract when sold to institutional investors, like hedge funds, but didn’t represent a security when sold to the general public on trading platforms. Distributing XRP as a form of compensation couldn’t satisfy the Howey test because these grants didn’t involve an investment of money.

In her ruling, Judge Torres compelled Ripple to pay a $125 million fine and to refrain from future securities law violations. The Commission filed a notice of appeal following this decision, seeking to overturn the ruling. On January 15, 2025, the agency filed its opening brief. Since then, important leadership changes have revamped the regulatory landscape.

The end of this lawsuit increases the chances for an XRP ETF to be approved by the SEC

According to Ripple’s Chief Legal Officer, Stuart Alderoty, Ripple is now in control of the situation and will assess how to best pursue their cross-appeal. Developed in 2012, XRP drives innovation in the financial payments space due to its unmatched speed, minimal transaction fees, and seamless scalability. To buy XRP, one must go through a crypto exchange and use fiat currencies. After purchase, it can be stored in a digital wallet that acts exactly like a banking app. Exchange-traded funds (ETFs) enable easier buying and selling compared to direct transactions.

Franklin Templeton, which manages approximately $27.7 billion in ETFs, has filed for an ETF that will track the spot price of XRP, expanding its focus beyond Bitcoin. As of March 12, several companies have filed for XRP ETFs in the U.S., including 21 Shares and Bitwise. The growing interest in alternative cryptocurrencies occurs amid a more favorable regulatory environment under the administration of Donald Trump, the unofficial “crypto president”. An ETF can be a convenient way to invest in cryptocurrency through a regular brokerage account.

Different ETFs tracking cryptocurrencies like Bitcoin, Ethereum, or a mix of both exist. Much like traditional ETFs, they’re traded on stock exchanges, following the prices of cryptocurrencies, either individually or in a group. The odds of a spot XRP ETF approval by the Commission have improved, with market participants estimating an 80% chance of approval. According to JP Morgan, XRP ETFs will see inflows of $8 billion.

Ripple Has Been In The Spotlight Lately Due To Various Noteworthy Advancements

On March 2, President-Elect Donald Trump announced that the strategic reserve of cryptocurrency for the U.S. government would include Ripple’s XRP alongside Solana, Cardano, Bitcoin, and Ethereum. In an interview with Fox Business, Michael Saylor, the former CEO of MicroStrategy, proposed that XRP ought to be issued under a regulatory framework. This would attract new entrants, such as institutional investors. Ripple itself stands to benefit from increased scrutiny as its products help with implementing regulatory initiatives for customers.

Ripple piqued interest when CEO Garlinghouse and CLO Alderoty attended a private dinner with Trump on January 6. The San Francisco-based company’s hiring and business deals have become U.S.-focused since Trump’s win in November 2024, with roughly 75% of open roles based in America. According to Coinglass, the Open Interest is +1830%, which translates into $3.81 billion. It implies a strong speculative interest, so investors are buying XRP in the hope that its price will increase, not necessarily because of inherent value.

Ripple has expanded its business with existing partners such as Revolut and Zero Cash to broaden access to its U.S. dollar-pegged stablecoin, launched in December 2024 on the XRP Ledger and Ethereum. RLUSD will be listed in different markets for seamless trading with minimal fees. In peer-to-peer transactions, it offers a simple and secure way for users to exchange value without intermediaries. South Korea’s BDACS will adopt Ripple digital asset custody solutions to secure XRP and RLUSD for institutional clients.

Concluding Remarks

To date, the SEC has declined to comment on Brad Garlinghouse’s statements, even if, in other cases, there was staff consensus on these matters before the decision was approved by a vote of the commission. Whether XRP will be the next Bitcoin remains to be seen. Interest in XRP is high, with whales acquiring more than 150 million tokens in the last 48 hours because they have a long-term vision. Ripple’s legal victory could cement its standing, enabling it to focus on expansion in the coming years.

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Adam Regan: Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

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