SEC Drops Case Against XRP, Ripple CEO Accuses Regulator of Market Manipulation

The U.S. Securities and Exchange Commission (SEC) has officially dropped its case against Ripple, ending a four-year legal battle over the classification of XRP. 

Ripple CEO Brad Garlinghouse announced the news on Wednesday morning in a video posted on X, calling the moment a long-awaited victory for the company and the broader crypto industry.

“Just over four years ago, the United States SEC filed its lawsuit against Ripple. I’m finally able to announce that this case has ended—it’s over,” Garlinghouse said.

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

Ripple’s Victory Over SEC: A Turning Point for Crypto Regulation?

The case, originally brought by the SEC under the Biden administration, accused Ripple of selling XRP as an unregistered security. 

The lawsuit was seen as a pivotal moment for crypto regulation. A ruling in the SEC’s favor could have redefined many digital assets as securities, bringing them under the agency’s strict regulatory framework.

Garlinghouse, speaking at the Digital Assets Summit in New York, described the ordeal as a “painful journey” that exposed flaws in the system. 

He accused the SEC of not acting in good faith, emphasizing that there were no victims or investor losses in the case. In his view, the agency was using regulatory enforcement as a tool for market manipulation rather than protecting investors.

Ripple initially secured a partial victory in 2023 when U.S. District Judge Analisa Torres ruled that XRP was not a security when sold on retail exchanges. However, sales to institutional investors were still deemed unregistered securities offerings. 

The SEC appealed the ruling in 2024, but the case was previously abandoned in Court.

XRP, which Ripple primarily uses for cross-border payments, saw an immediate price surge following the announcement. The token jumped 10% to a high of $2.55, reflecting renewed optimism among investors. 

Garlinghouse believes the resolution of the case will have lasting implications for crypto regulation in the U.S. He argued that the lawsuit was never about protecting investors but rather about the SEC exerting control over the industry.

Ripple’s ‘Painful Journey’ Ends in Victory — What’s Next for XRP?

The SEC’s decision to drop its case against Ripple marks a significant shift in the agency’s approach to crypto regulation, fueling optimism for an XRP exchange-traded fund (ETF). 

The regulator’s retreat has boosted market confidence, with XRP surging 14.3% in the past 24 hours and climbing 250% over the past year.

Investor expectations for an XRP ETF approval have also risen. 

Following Ripple’s announcement, Polymarket’s probability of approval increased from 77% to 79%. Analysts point to the SEC’s softened stance under the new administration as a key factor.

The SEC is now reviewing multiple XRP ETF applications, with a final decision expected by mid-October. If approved, industry estimates suggest strong early inflows.