The XRP lawsuit between the US SEC and Ripple Labs is now over, marking a precedent for the broader digital currency ecosystem and setting the coin on a growth path.
In a significant development, the United States Securities and Exchange Commission (SEC) has officially dropped its class actions against leading cryptocurrency firm Ripple Labs.
Ripple Legal Victory and Market Reaction
In a statement published on X, Ripple Labs, Inc. CEO Brad Garlinghouse disclosed to the crypto community and XRP enthusiasts that the US security agency had dropped the five-year-long Ripple lawsuit.
This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.
The future is bright. Let’s build. pic.twitter.com/7WsD0C92Cm
— Brad Garlinghouse (@bgarlinghouse) March 19, 2025
For context, since 2020, Ripple Labs has been in a legal battle with the US Securities and Exchange Commission (SEC) over whether its cryptocurrency, XRP, should be classified as a security.
However, through its lawyers, the California-based company repeatedly maintained its stance that XRP was not a security. The attorneys passionately argued that XRP functioned like other digital assets.
Despite the SEC arguing otherwise, several court rulings shaped the direction of the litigation, including a key decision in 2023 that favored Ripple in certain aspects.
Following the SEC’s decision to drop the lawsuit, XRP’s price surged as investors reacted.
Market analysts are speculating that this outcome will drive positive market sentiment in favor of Ripple Labs and further encourage both retail and Institutional adoption of XRP.
Following the announcement, XRP’s trading volume has soared by 50%. Similarly, the price of XRP was trading at $2.48, up 10% in the last 24 hours.
US SEC and New Crypto Stance
In related news, Ripple Labs’ lawsuit closure coincides with different class actions, such as Binance, Kraken, and Coinbase, that have been paused or dismissed by the SEC under Acting SEC Chairman Mark Uyeda.
Notably, with the Ripple Labs lawsuit now over, many experts believe that Ripple is expected to focus on expanding its services and strengthening its position in global finance.
The company has been working on cross-border payment solutions and blockchain-based financial services.
For example, they recently partnered with Unicâmbio, a Portuguese currency exchange provider.
Reports indicate that this collaboration will bring faster cross-border payments between Portugal and Brazil.
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