- SEC drops its five-year case against Ripple, marking a major victory for XRP.
- Judge ruled XRP is not a security, setting a crucial precedent for crypto regulation.
- XRP price may surge past $2 as investor confidence returns after the SEC lawsuit.
After a grueling five-year legal battle, the U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Ripple, marking a significant win for the cryptocurrency industry. The lawsuit, which accused Ripple of selling XRP as an unregistered security, has been one of the most closely watched cases in crypto history. In his X post, Ripple CEO Brad Garlinghouse shared the news stating that the future is bright and it’s time to build it.
The SEC initially filed its lawsuit against Ripple in December 2020, alleging that the company had illegally raised $1.3 billion through the sale of XRP. This legal battle shook the crypto market, causing XRP’s price to plummet as major exchanges delisted the token due to regulatory uncertainty. Throughout 2021 and 2022, Ripple fought back, arguing that XRP should not be classified as a security and that the SEC failed to provide clear guidelines for the industry.
For Garlinghouse, this victory represents not only a personal triumph but also a turning point for the broader crypto market. The ruling sets a crucial precedent that could help protect other digital assets from similar regulatory scrutiny. The news has already sparked excitement within the XRP community, with many speculating that the token’s price could surge beyond $2 as investors regain confidence.
Related: Ripple and SEC Near Settlement in XRP Lawsuit Dispute
In 2023, the case took a dramatic turn when Judge Analisa Torres ruled that XRP was not a security when sold to retail investors, providing Ripple with a partial victory. However, SEC Chair Gary Gensler continued to push the case forward, maintaining that Ripple’s institutional sales still violated securities laws. Despite the SEC’s persistence, the regulator ultimately chose to settle the case in March 2025, officially dropping all remaining charges. With the closure of the lawsuit, Ripple can focus on expansion, partnerships, and positioning XRP as a global payment solution without the shadow of SEC litigation looming over its future.
