Ripple Effect: SEC Drops Lawsuit, XRP Soars

The SEC has officially dropped its case against Ripple, ending the four-year lawsuit filed in December 2020. This was revealed by Ripple CEO Brad Garlinghouse on March 19, 2025, as a huge victory for Ripple and the cryptocurrency community. The case was the SEC's argument that Ripple sold an unregistered $1.3 billion offering of securities in the form of XRP tokens, a 2023 ruling that XRP was not a security in secondary markets but that Ripple broke securities law through institutional sales.

After the news, XRP price surged close to 10% to approximately $2.5, indicating higher investor confidence with less regulatory risk. The action by the SEC can be a sign of a shift in U.S. crypto regulation that will provide access to more transparent rules and a better environment for crypto innovation. Garlinghouse called this phenomenon the ability to make America a top crypto development hub.

Even though the SEC abandoned its appeal, Ripple is now negotiating what comes next, such as a cross-appeal or payment of delinquent fines. This settlement is a win for Ripple and has potential implications for future U.S. regulation of digital assets