The United States Securities and Exchange Commission (SEC) has officially dropped its four-year lawsuit against Ripple. This landmark decision marks a significant milestone in the crypto industry and sets a crucial precedent for regulating digital assets in the U.S.
Ripple’s Hard-Fought Victory
The lawsuit, which began in December 2020, accused Ripple of selling XRP as an unregistered security, violating federal securities laws. However, after a lengthy and complex battle, the court has ultimately ruled in Ripple’s favor, declaring that XRP is not a security.
Ripple CEO Brad Garlinghouse expressed his thoughts on X regarding the company’s victory against the SEC. He criticized the regulatory watchdog for operating above the law and ignoring the court’s ruling that XRP is not a security. Despite the court’s ruling, Garlinghouse’s post was in response to the SEC’s continued classification of XRP as a security. The security agency had filed an appeal against the district court’s decision, arguing that XRP sales constitute securities transactions.
In reaction to the monumental victory, Garlinghouse stated that Team Ripple will watch closely and weigh their options to hold the SEC accountable. He added:
“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.”
Crypto Industry Sees A New Era of Clarity
The outcome of this lawsuit has far-reaching implications for the crypto industry, providing much-needed clarity on the regulatory landscape. The ruling sets a distinction that will likely influence the classification of other digital assets, shaping the future of digital regulation in the U.S. As the industry continues to grow, this landmark decision will serve as a ray of hope, paving the way for innovation and growth.
Meanwhile, recent market trends and regulatory developments, including Ripple’s focus on cross-border payments and a global XRP ETF launch in Brazil, are driving XRP’s growth. XRP’s current 14% price surge to $2.55 is pushing its fully diluted valuation (FDV) to $254.87 billion, surpassing Ethereum’s $244.24 billion FDV. This makes it the second-highest FDV in crypto as of March 19, 2025.
As the market continues to change, it is important to monitor developments closely and adjust strategies accordingly.
