After 4 Years of Battle, the US SEC Drops Its Case Against Ripple

In its December 2020 lawsuit, the U.S. SEC alleged that Ripple, the for-profit company using XRP in some solutions, illegally raised $1.3 billion

The U.S. SEC has dropped its case against Ripple after four years of legal battle. The regulator's action comes amid a shift in administrative regime and crypto regulatory policies.

The U.S. SEC has dropped its case against Ripple following a four-year legal battle. The move comes as the administrative regime changes and crypto regulatory policies are shifting rapidly.

In December 2020, the SEC sued Ripple, the for-profit company using XRP in some solutions, alleging that it had illegally raised $1.3 billion via an ICO by selling unregistered securities in XRP. Ripple, in turn, asserted that the SEC's actions were unjust and that XRP should be classified as a commodity, not a security.

The case has since been concluded, marking a pivotal moment not only for Ripple but also for the broader crypto market. Had the SEC won, it would have set a precedent for classifying digital assets—especially those launched by U.S. founders—as securities.

This classification would have subjected most tokens, including some of the best cryptos to buy, to stricter financial regulations, akin to stocks and ETFs, potentially slowing down the rapid growth of the crypto market.

However, under the new Trump administration, regulatory policies are shifting rapidly. With the appointment of David Sacks as crypto and AI czar, the U.S. aims to create a favorable environment that encourages crypto development. Sacks has been buying Bitcoin since 2012 and believes it will become the preferred form of currency over time.

Following through on his campaign pledges, Trump has adopted a pro-crypto stance. Over the past three months, since Gary Gensler's resignation, the SEC has withdrawn lawsuits against several crypto firms and exchanges, including Robinhood and Coinbase.

This signals a trend where crypto firms are finding relief and can now focus on growth rather than funneling money to lawyers.

In a post on X, Brad Garlinghouse, Ripple's CEO, expressed relief, stating, "The case has ended—it’s over."

Bitnomial, a crypto exchange, is launching the first-ever CFTC-regulated XRP futures in the U.S. This physically settled product begins trading today, March 20.

Multiple spot ETF applications are also awaiting approval. Punters on Polymarket give an 83% chance that the first spot XRP ETF will go live in H2 2025.

On the daily chart, XRP remains in an uptrend. However, prices are stuck in consolidation, moving sideways after hitting $3.4 in January 2025.

The coin has found strong support at $2, and as long as traders and institutions accumulate, buyers might gain the strength to push higher—potentially to new all-time highs.

According to Santiment, the number of whales holding at least 1 million XRP—controlling over $114 billion worth of the coin—has risen 6.5% in two months.

Meanwhile, XRP appears to be decoupling from the "altcoin pack."

Accompanying this uptick is a surge in on-chain activity: new wallet interactions on the XRP Ledger jumped 600% in March compared to previous months, pointing to growing interest.