The SEC has decided to drop its lawsuit against Ripple Labs, marking a significant shift in the long-running legal battle. Ripple CEO Brad Garlinghouse announced the decision on March 19, 2025, confirming that the case had come to an end. He expressed that it was a “victory for the industry” and described the case as “doomed from the start.” Garlinghouse criticized the SEC’s approach, calling it an overreach in its efforts against Ripple. The case, which had been a significant challenge for the crypto industry, now concludes with the SEC halting its legal actions.
Ripple has faced accusations from the SEC since 2020, when the agency claimed Ripple conducted an unregistered $1.3 billion securities offering involving its token, XRP. The SEC argued that XRP was a security, subjecting Ripple to securities laws. However, a 2023 ruling by a federal court found that Ripple’s secondary market sales of XRP were not securities transactions. The court did find, however, that the sales to institutional investors qualified as securities, resulting in Ripple being ordered to pay a $125 million fine.
Ripple’s stock surged following the recent announcement, with XRP’s price climbing more than 8% to over $2.50. This spike in value reflects the market’s positive reaction to the resolution of the legal dispute.
Though the SEC has not made an official statement, Ripple’s team confirmed that the decision is pending a vote from the Commission, with an official withdrawal expected soon. The SEC’s shift in approach is consistent with broader changes under President Donald Trump’s administration, which has adopted a more crypto-friendly stance. Under previous SEC Chair Gary Gensler, the agency aggressively pursued crypto firms, but since his departure, several key cases, including those against exchanges like Coinbase and Kraken, have been dismissed.
The end of this case has far-reaching implications for the cryptocurrency industry. Garlinghouse noted that the legal resolution would allow Ripple to focus on growing its business, which has already invested over $2 billion in crypto ventures, regardless of XRP’s status. He expressed confidence that if crypto succeeds, Ripple will succeed as well.
This marks the end of years of legal proceedings. The SEC’s pursuit, if successful, could have set a precedent in determining whether cryptocurrencies would be classified as securities or commodities. With the case now dropped, the pressure on Ripple and the broader crypto market has significantly lessened, with many in the industry seeing it as a relief. As Garlinghouse concluded, “This feels like a victory for the industry.”
