The prolonged clash between Ripple and the SEC concluded with a resolution in March 2025, marking a significant milestone for the crypto industry.
End of a Lengthy Legal Battle
The SEC accused Ripple of selling XRP as an unregistered security. The case intensified in December 2020, but a pivotal moment came in July 2023 when a federal judge ruled XRP couldn't be classified as a security in most cases. This led to the conclusion of the trial in March 2025. Brad Garlinghouse, CEO of Ripple, commented that the victory enhances the image of XRP and the crypto industry as a whole.
Impact on XRP Market and Valuation
Following the case's resolution, XRP's price rose by 13%, reaching $2.53. This is due to reduced regulatory uncertainty and the potential return of institutional investors. XRP's market capitalization is estimated at $146 billion.
Comparison with Ethereum and Future Prospects
Despite Ripple's success, Sid Powell, CEO of Maple Finance, cautions that true competition with Ethereum is yet to come. Ethereum dominates in DeFi, whereas XRP primarily focuses on cross-border payments. However, XRP has strategic advantages, like the On-Demand Liquidity service, which attracted major bank partnerships. For full competition with Ethereum, XRP will need to extend into DeFi.
The end of the Ripple vs. SEC legal battle strengthens the legitimacy of crypto assets. While the prospect of XRP toppling Ethereum remains unlikely, it provides Ripple with an opportunity to reevaluate its strategy and accelerate development.
