Ripple vs SEC Update Today: A Landmark Victory for Crypto

The long-standing legal battle between Ripple vs the U.S. Securities and Exchange Commission (SEC) took a dramatic turn on March 19, 2025, when the SEC announced it was withdrawing its appeal against Ripple.

This development marks a significant victory not only for Ripple but for the broader cryptocurrency industry, signaling a shift in regulatory oversight under the new U.S. administration.

SEC Drops Appeal, Ripple Gains Upper Hand

Ripple CEO Brad Garlinghouse shared the news on X, calling it "the moment we’ve been waiting for," while Ripple's Chief Legal Officer, Stuart Alderoty, emphasized that the company is now in the driver’s seat.

This decision confirms that XRP is not a security and that programmatic sales of XRP do not qualify as investment contracts.

The SEC had initially filed its appeal in January 2025, just before the departure of SEC Chair Gary Gensler.

Many drew parallels between this move and the agency’s 2020 lawsuit against Ripple, which was filed days before former SEC Chair Jay Clayton stepped down.

However, the regulatory landscape has since changed, with President Donald Trump’s pro-crypto stance reshaping the SEC’s approach to digital assets.

XRP Market Reaction and Price Movement

Following the SEC’s reversal, XRP surged to a session high of $2.5073 before stabilizing. Despite the gains, XRP has yet to reclaim its January 2025 peak of $3.3999 or its all-time high of $3.5505.

Nevertheless, the ruling has bolstered market confidence in Ripple and XRP’s long-term potential.

Ripple’s Next Move: Cross-Appeal or Settlement?

While Ripple celebrates the SEC’s withdrawal, the company still faces a decision on whether to proceed with its cross-appeal. In August 2024, Judge Analisa Torres ordered Ripple to pay a $125 million fine for violating U.S. securities laws.

Ripple had responded with a cross-appeal in October 2024, seeking to overturn certain aspects of the judgment.

Legal experts outline four possible scenarios for Ripple:

1. Continue the cross-appeal – This could result in a ruling from an appellate court on whether investment contracts require contracts.

2. Drop the cross-appeal and attempt to amend the judgment – This could potentially reduce the $125 million penalty.

3. Drop the cross-appeal and settle with the SEC privately – This would provide certainty but might not overturn previous rulings.

4. Pay the fine and move forward – This would allow Ripple to focus on business expansion.

While some speculate that a settlement might be the cleanest resolution, others believe that Ripple will push for a complete reversal of the penalties imposed.

Potential for an XRP Spot ETF

The SEC’s decision to drop its appeal also strengthens the case for an XRP spot Exchange-Traded Fund (ETF).

The approval of such an ETF could significantly boost institutional demand for XRP, similar to how Bitcoin’s spot ETF approval in January 2024 contributed to BTC’s surge past $109,000. Analysts predict that an XRP ETF could drive prices toward $5 if approved.

Crypto Regulation Under the Trump Administration

Since Donald Trump’s return to office, the SEC has taken a more lenient approach toward crypto. In addition to ending its case against Ripple, the agency has dismissed or paused legal actions against major exchanges like Coinbase and Kraken.

Trump has also nominated Paul Atkins, a pro-crypto legal expert, to replace Gary Gensler as SEC Chair.

Ripple was a key donor in the last congressional election cycle, and its leadership has maintained close ties with the Trump administration. The company’s strategic positioning could further influence regulatory decisions in favor of crypto adoption.

Conclusion: What’s Next for XRP?

Despite the SEC’s retreat, several factors will continue to shape XRP’s price and market position:

1. Ripple’s Cross-Appeal: A successful appeal could propel XRP beyond its all-time high of $3.55.

2. ETF Approval: Institutional inflows from an XRP spot ETF could push prices toward $5.

3. Global Economic Conditions: Market uncertainties, including trade tensions and recession risks, could impact short-term price action.

The coming months will be crucial for Ripple as it decides its next legal and business moves. While the battle with the SEC may be ending, the future of XRP and its role in the broader financial ecosystem remains an evolving story.