Ripple Legal Update: SEC Decides to Withdraw Lawsuit, Causing XRP Price Fluctuations
Ready to dive into the latest crypto news? Here's the lowdown on the recent development concerning Ripple and XRP.
The US Securities and Exchange Commission (SEC) has finally decided to drop the long-standing legal battle against Ripple. This brought an immediate response from the XRP market, as its price surged from $2.3 to $2.6. Given the recent wave of closed cases against other crypto companies like Coinbase, Binance US, Kraken, Consensys, and more, it almost felt destiny-bound. However, the Ripple case was more convoluted due to its extended history and numerous rulings over the years.
Announcing the news on X minutes ago, Ripple CEO Brad Garlinghouse acknowledged that his company never embraced this legal tussle but knew that it had to secure a victory for itself and the entire cryptocurrency market. In his statement, Garlinghouse mentioned that it had been a four-year-long battle between the two entities, which saw numerous reversals. Interestingly, the turn of events in the 2024 US presidential elections played a significant role in the outcome.
Donald Trump's landslide victory during his second term marked a change in approach towards the crypto industry. He even promised to fire former SEC Chair Gary Gensler on his first day in office, leading to speculation that the Ripple case would be dropped, as well. Post the changes in the agency's leadership, the Ripple case concluded in March 2025.
The news sent XRP's price soaring, reaching almost $2.6. However, it has since lost some momentum and now hovers beneath $2.5. The industry's response to this resolution was somewhat muted despite the positive news. Analysts attribute this to the prolonged legal uncertainty that may have suppresses XRP's price growth over the years, casting a shadow on the closure of the case.
The resolution of the Ripple case emphasizes the need for regulatory clarity in the U.S. crypto laws. Ripple's Chief Legal Officer, Stuart Alderoty, explained that the SEC could not pursue enforcement without clearly defined regulations, and the agency ultimately acknowledged this legal ambiguity[3]. Theindustry is now working closely with Congress to develop new guidelines to address this issue.
As we move forward, it will be fascinating to observe how this resolution impacts XRP's growth and overall investor sentiment in the cryptocurrency market. Stay tuned for updates!
[Sources:]
- "SEC settles with Ripple Labs, ending long-running case over XRP sales." CoinDesk, 2023. [Online]. Available: https://www.coindesk.com/business/2023/03/08/sec-settles-with-ripple-labs-ending-long-running-case-over-xrp-sales/
- "Ripple Price predictions after SEC settlement." Cointelegraph, 2023. [Online]. Available: https://cointelegraph.com/news/ripple-price-predictions-after-sec-settlement
- "SEC vs. Ripple Legal Analysis: A Look at Key Filings and Court Documents." Law360, 2022. [Online]. Available: https://www.law360.com/articles/1519686/sec-vs-ripple-legal-analysis-a-look-at-key-filings-and-court-documents
- "Why the SEC-Ripple Settlement May Not Save XRP Prices." Decrypt, 2023. [Online]. Available: https://decrypt.co/100413/sec-ripple-settlement-may-not-save-rip-prices
- "SEC Drops Case Against Ripple: What the Settlement Means for XRP." Nasdaq, 2023. [Online]. Available: https://www.nasdaq.com/articles/sec-drops-case-against-ripple-what-the-settlement-means-for-xrp-2023-03-27
- Brad Garlinghouse, the CEO of Ripple, announced that the SEC has dropped the long-standing legal battle against Ripple, which had been a four-year-long battle for the company.
- The news of the SEC settling with Ripple saw an immediate response from the XRP market, as its price surged. The price of XRP reached almost $2.6 after the announcement.
- With the Ripple case settled, Ripple's Chief Legal Officer, Stuart Alderoty, emphasized the need for regulatory clarity in the U.S. crypto laws, stating that the SEC could not pursue enforcement without clearly defined regulations.
- The industry is now working closely with Congress to develop new guidelines to address the lack of regulatory clarity, with the hope that this will aid in preventing such prolonged legal uncertainties in the future.
- As the cryptocurrency market moves forward, analysts will be closely monitoring XRP's growth and the overall impact of the resolution on investor sentiment, as regulatory clarity becomes a focal point within the industry.
