Ripple lifts the sword of Damocles: the end of a long legal battle

The SEC accused Ripple of having sold XRP as an unregistered security, an allegation that weighed on the crypto ecosystem since December 2020.

The tug of war between Ripple and the SEC over the past four years has plunged the crypto market into growing uncertainty. As a result, investors remain skeptical, while XRP is facing increasing pressure on its legitimacy. But in a surprising turn of events, the apex court has dropped its lawsuits, marking a historic win for Ripple and could have decisive implications for its native token.

The legal battle: A decisive turning point

The SEC's accusations against Ripple span four years and have deeply affected the crypto ecosystem. The apex court is now rolling back its claims that XRP is an unregistered security.

A major turning point came in July with a federal judge's ruling that XRP cannot be considered a security in the majority of transactions, a setback for the SEC.

This decision puts the apex court in a difficult position as it is running out of time and options to continue the lawsuit. Finally, the SEC chose to definitively end the trial.

Announcing "the case is over", Brad Garlinghouse, CEO of Ripple, highlights a decisive victory for the company and a new chapter for its token.

The legal battle between the apex court and the crypto behemoth has come to an end, but its consequences are far-reaching and could reshape the crypto landscape.

Could such a surge help XRP compete with Ethereum?

While some anticipate a scenario where XRP rivals Ethereum, the reality of the market calls for caution.

As Sid Powell, CEO of Maple Finance, points out, this legal win stabilizes the regulatory future of the token, but the real battle is fought elsewhere. Indeed, Ethereum massively dominates decentralized finance (DeFi) with a Total Value Locked (TVL) of $114 billion, while XRP is still struggling to establish itself in this realm.

The power of Ethereum lies in its solid ecosystem, which hosts smart contracts, decentralized applications, and advanced staking solutions, while Ripple remains primarily focused on cross-border payments.

Nevertheless, XRP has strategic advantages. Its On-Demand Liquidity (ODL) service recorded $30 billion in transactions in 2023 and continues to attract major partnerships, notably with Standard Chartered Bank and MoneyGram.

“This decision could restore confidence among investors and institutions, boosting Ripple’s adoption,” says Ryan Lee, analyst at Bitget Research. However, to truly worry Ethereum, XRP will need to broaden its scope beyond payments and delve deeper into DeFi and smart contracts.

The end of the conflict between Ripple and the SEC marks a regulatory victory for the entire crypto ecosystem, reinforcing the legitimacy of these assets in the eyes of authorities. However, the possibility that XRP dethrones Ethereum remains highly hypothetical, unless there is massive adoption by financial institutions and a strategic shift towards DeFi.

Nevertheless, this decision offers Ripple a unique opportunity: to redefine its positioning and leverage this new climate of trust to accelerate its development.