XRP Surges 10% as Ripple Announces SEC to Drop Appeal After 4-Year Legal Battle

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The cryptocurrency world is abuzz as Ripple Labs announces a major breakthrough in its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). Following CEO Brad Garlinghouse’s official statement that the SEC will drop its appeal in the XRP lawsuit, XRP price surged over 10%, briefly reaching $2.57 — a strong signal of renewed market confidence.

"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. The future is bright. Let's build."
— Brad Garlinghouse (@bgarlinghouse) March 19, 2025

This landmark development marks the potential end of a four-year regulatory saga that has shaped the trajectory of digital asset regulation in the United States.

The Four-Year Legal Battle Between Ripple and the SEC

The legal conflict began in December 2020 under the Trump administration, when the SEC filed a lawsuit against Ripple Labs, alleging that the company raised $1.3 billion through unregistered securities offerings by selling XRP. At the heart of the case was the SEC’s claim that XRP qualifies as a security, not a currency or commodity.

This lawsuit sent shockwaves across the crypto industry, triggering massive sell-offs and erasing over $15 billion in market value from XRP investors. For years, uncertainty loomed over the asset’s legal status, impacting exchange listings and investor sentiment globally.

However, in a pivotal July 2023 ruling, U.S. District Judge Analisa Torres delivered a split decision:

This partial win was widely interpreted as a de facto validation of XRP’s utility and decentralized nature, setting a crucial precedent for how digital assets are classified under U.S. law.

Despite being fined $125 million in August 2023, Ripple remained steadfast in its appeal defense — and now, with the SEC backing down, the path toward regulatory clarity appears clearer than ever.

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Shifting Regulatory Winds: A New Era for Crypto?

The SEC’s decision to drop its appeal reflects a broader shift in U.S. cryptocurrency regulation. Since former SEC Chair Gary Gensler stepped down, the agency has moved to dismiss or scale back multiple high-profile cases against crypto firms, signaling a more pragmatic approach.

Moreover, President Trump’s nomination of Paul Atkins, a known pro-crypto advocate and former SEC commissioner, to lead the agency again has further fueled optimism. Although Senate confirmation hearings have yet to be scheduled, the political momentum appears to be turning in favor of clearer, innovation-friendly regulations.

Ripple’s strategic engagement in policy advocacy likely played a role as well. During the 2024 U.S. presidential election cycle, the company contributed over $70 million to Fairshake Super PAC**, an organization supporting pro-crypto legislation. Additionally, Ripple donated more than **$5 million to Trump’s inauguration fund, highlighting its deepening ties with key political figures.

These efforts underscore a growing trend: crypto companies are no longer just building technology — they're shaping policy.

XRP ETF Approval Now Within Reach?

With the legal cloud lifting, market attention is rapidly pivoting to the next potential milestone: a spot XRP exchange-traded fund (ETF).

Several major financial institutions — including Grayscale, Bitwise, and Franklin Templeton — have already submitted applications for XRP-based ETFs. According to Bloomberg Intelligence analysts, the likelihood of approval before the end of 2025 now stands between 65% and 75%, up significantly from previous estimates.

An approved XRP ETF would:

While the SEC has not yet issued an official statement confirming the appeal withdrawal, historical precedent suggests such decisions are typically made internally before being put to a full commission vote.

Frequently Asked Questions (FAQ)

Q: What does it mean that the SEC is dropping its appeal?
A: It means the SEC will no longer challenge the 2023 court ruling that partially favored Ripple. This effectively ends the litigation phase and reinforces legal clarity around XRP's classification.

Q: Is XRP now officially considered a security?
A: No. The court ruled that while institutional sales were securities transactions, open-market retail trading of XRP is not. This distinction is critical and supports treating XRP as a non-security in most contexts.

Q: How could an XRP ETF impact the price?
A: ETF approvals typically lead to increased demand due to easier access for institutional and retail investors. If approved, an XRP ETF could drive sustained upward pressure on price.

Q: Was Ripple found guilty in the lawsuit?
A: Ripple was ordered to pay a $125 million penalty for unregistered institutional sales, but won on key legal grounds — especially regarding retail transactions. The outcome is widely seen as a strategic victory.

Q: Does this ruling set a precedent for other cryptocurrencies?
A: Yes. The court’s framework — distinguishing between private placements and public trading — may influence how other tokens like ADA, SOL, or DOT are treated under securities law.

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What’s Next for Ripple and XRP?

Beyond regulatory relief, Ripple continues expanding its real-world use cases. Its On-Demand Liquidity (ODL) solution, powered by XRP, enables near-instant cross-border payments for banks and fintechs worldwide. With partners in Japan, South Korea, Africa, and Latin America, Ripple is proving that blockchain can solve tangible financial infrastructure challenges.

The combination of regulatory clarity, growing adoption, and potential ETF momentum positions XRP uniquely among major cryptocurrencies.

As Brad Garlinghouse emphasized: "The future is bright." And for the first time in years, both investors and innovators seem to agree.

👉 Stay ahead of crypto’s biggest opportunities — see what’s next after this historic ruling.

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