Ripple CEO Brad Garlinghouse recently announced on X that the SEC would drop the lawsuit against the company, which lasted nearly four years.
SEC withdraws lawsuit on Ripple
The SEC first used Ripple’s alleged marketing of XRP as an unregistered security in December 2020, when the lawsuit began.
Since then, XRP has fought a prolonged legal battle in pursuing regulatory recognition. Currently, large companies and institutions are increasingly taking advantage of this payment encryption platform, an example of Hashdex’s recently submitted XRP ETF file.
That’s it – the moment we’ve been waiting for. The SEC will give up its appeal – a huge victory for Ripple, Crypto and Crypto.
The future is bright. Let’s build. pic.twitter.com/7wsd0c92cm
— Brad Garlinghouse (@bgarlinghouse) March 19, 2025
Earlier, the chairman of the lawsuit between the Securities and Exchange Commission and Ripple Labs, had issued a ruling that the sale of XRP cannot be considered an investment contract.
Specifically, the judge determined that while it is safe to sell $XRP to a third-party agency through direct agreement or over-the-counter (OTC) transactions, the order sales through centralized transactions are not the case.
This is considered a major victory for payment platforms in the cryptocurrency market and has also inspired more optimistic in the community about the prospects of regulatory frameworks that support the development of cryptocurrencies.
XRP price responded positively
After the announcement, XRP Experienced rapid growth of up to 14%, briefly surpassing ethFully diluted valuation (FDV). Currently, the token’s FDV is about $256 billion.
Learn more: XRP Price Forecast
XRP jumps sharply due to positive announcements – Source: Coingecko
