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Ripple and the SEC: A Long-Awaited Resolution
After nearly four years of legal wrangling, the U.S. Securities and Exchange Commission (SEC) is expected to drop its case against Ripple, the blockchain company behind the XRP cryptocurrency. The move, confirmed by a Ripple spokeswoman pending commission approval, has already sent XRP’s value soaring, reflecting the significance of this development for the crypto industry.
The SEC’s legal challenge began in December 2020, accusing Ripple of conducting unregistered securities sales through its XRP token. While Ripple secured a partial victory in July 2023, the case remained unresolved until now. The anticipated withdrawal of the SEC’s appeal is seen as a major win for Ripple and potentially a turning point in how regulators approach cryptocurrencies.
XRP’s Market Surge and Regulatory Implications
Following the news, XRP’s value surged, reaching approximately $2.50 according to CoinMarketCap at the time of writing. This price jump positions XRP as the third-largest cryptocurrency by market capitalization, overtaking Tether and underscoring investor enthusiasm over the SEC’s retreat.
UPDATE: Despite the end of the legal challenge, Ripple's XRP price did not manage to rise, causing the crypto to fall back to fourth place in terms of largest market cap on March 21, 2025.
Source: CoinMarketCap, March 21, 2025 2:30 pm
Ripple CEO Brad Garlinghouse, speaking to Bloomberg, noted that with the case nearly behind them, the company can focus on broader ambitions. He suggested that the launch of an XRP exchange-traded fund (ETF) and XRP’s inclusion in the U.S. crypto stockpile could be on the horizon by year’s end. These developments would mark a significant milestone for XRP’s adoption in mainstream finance.
READ: Could a U.S. Recession Be the Next Big Catalyst for Bitcoin?
The SEC’s decision to drop the case also aligns with a broader trend of the agency softening its approach toward the crypto sector. In recent weeks, the SEC has dismissed cases against major players such as Coinbase, Kraken, and Consensys. Officials have stated that ongoing investigations are being paused while a new task force works on developing a clear regulatory framework for digital assets.
A Shift in Regulatory Attitude?
The decision to halt enforcement actions against Ripple and other major crypto firms reflects what some see as a shift in regulatory priorities under the Trump administration. Rather than pursuing legal battles, the SEC appears to be focusing on building a comprehensive framework for crypto regulation. This shift has been described by some industry experts as a necessary step toward clarity and stability in the U.S. fintech landscape.
An SEC spokesman declined to comment on the decision to drop the Ripple case. However, insiders suggest that the agency’s pivot toward clearer guidelines could foster a more collaborative relationship between regulators and the crypto industry.
What’s Next for Ripple and XRP?
With the SEC’s case likely ending, Ripple is poised to explore new opportunities. Garlinghouse mentioned the possibility of a Ripple initial public offering (IPO), though he emphasized that it is not a primary focus. Instead, attention is being directed at launching an XRP ETF and securing XRP’s position in the U.S. crypto stockpile, a priority under President Donald Trump’s executive order.
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Nine companies, including Bitwise, ProShares, and 21Shares, have already filed with the SEC to launch XRP ETFs. This interest from institutional players highlights XRP’s growing appeal as a legitimate investment asset, especially now that legal uncertainties are being addressed.
The end of the Ripple case could also influence broader crypto regulation. As the SEC continues to evaluate its approach, the industry may benefit from clearer guidelines that promote innovation while addressing security concerns.
The Bigger Picture
For Ripple and the wider crypto industry, the SEC’s decision to drop its case could be a game-changer. XRP’s value surge is not only a market reaction but also a reflection of investor confidence in the cryptocurrency’s long-term potential. As regulators work to establish a coherent framework for digital assets, Ripple’s victory may serve as a pivotal moment in how fintech companies navigate compliance and growth.
