Ripple Labs has concluded a long-standing legal dispute with the SEC, significantly altering the regulatory landscape for cryptocurrencies in the U.S.
The Long Legal Battle Between Ripple and SEC
The SEC sued Ripple in 2020, claiming the sale of XRP was unregistered securities. Ripple contested this, asserting that XRP functions as a currency and should not fall under SEC regulation. A series of court rulings favored Ripple, including a 2023 decision classifying XRP as a non-security when sold to retail investors. The SEC initially appealed this decision but abandoned the effort in March 2025, attributed to shifting regulatory attitudes and legal precedents.
Market Impact and XRP's Surge
Following the SEC's announcement to drop its appeal, XRP's price rose by 12%. Ripple's partnerships with major financial institutions, such as Santander and Standard Chartered, have expanded. Alderoty noted that the company can now focus on global growth without the distractions of the legal battle.
Future of Cryptocurrency Regulation
While the SEC's decision does not preclude future actions against other crypto companies, it establishes a framework for distinguishing between currencies and securities. Alderoty urged lawmakers to formalize clear laws regarding cryptocurrencies. Congress has been discussing several bills since 2024, and the outcome of the Ripple case may expedite this process.
Ripple's victory in the XRP case significantly changes the dynamics in the cryptocurrency sphere and emphasizes the need for clear regulation in the sector.
