SEC Officially Drops Ripple Lawsuit: A Landmark Victory for XRP and Crypto

The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Ripple (XRP), marking a major victory for the cryptocurrency industry. Ripple CEO Brad Garlinghouse announced the news on X, calling it a “resounding victory for Ripple, for crypto, every way you look at it.” The decision follows a broader policy shift in the SEC’s approach to digital assets under the Trump administration.

The End of a Lengthy Legal Battle

The SEC initially filed its lawsuit against Ripple in 2020, arguing that XRP was an unregistered security. The legal battle continued for over four years, creating uncertainty in the crypto industry. However, with the Trump administration’s return to office, regulatory attitudes have shifted significantly. The SEC has dropped multiple high-profile lawsuits, including cases against Coinbase and Kraken, signaling a more crypto-friendly regulatory stance.

Brad Garlinghouse, reflecting on the lawsuit’s dismissal, stated, “In many ways, it was the first major shot fired in the war on crypto. I truly felt that I knew then that Ripple was not only on the right side of the law, but we were also going to be proven to be on the right side of history.”

Ripple and XRP Surge Following the News

The market responded positively to the lawsuit’s dismissal. In the 24 hours following the announcement, XRP saw a price surge of over 12%, reinforcing investor confidence in the project. Analysts believe that with regulatory uncertainty cleared, Ripple can now focus on expanding its payment solutions and institutional adoption.

Additionally, this decision could pave the way for new financial products, including the long-discussed possibility of an XRP exchange-traded fund (ETF). With the SEC’s legal barriers removed, institutional interest in XRP may continue to grow.

A New Era for Crypto Regulation?

The decision to drop the Ripple lawsuit comes amid a broader regulatory shift under the Trump administration. The SEC has launched a crypto task force, ceased legal action against major exchanges, and is reportedly reconsidering its stance on digital assets like XRP and Solana.

The implications of this case extend beyond Ripple. If the SEC’s stance continues to evolve, other cryptocurrencies facing regulatory scrutiny could see similar outcomes. This could open the door for increased institutional adoption and a more stable regulatory framework for the crypto market.

Conclusion

The SEC’s decision to drop its lawsuit against Ripple marks a defining moment for both XRP and the broader cryptocurrency industry. With regulatory uncertainty lifted, Ripple can now fully pursue its mission of revolutionizing global payments. Meanwhile, the outcome of this case sets a precedent for future regulatory actions, potentially shaping the next phase of crypto adoption in the United States.