The unexpected closure of SEC's lawsuit against Ripple triggered a rise in XRP's price and sparked discussions on the future of crypto regulations.
The SEC vs. Ripple: A Brief Overview
In December 2020, the SEC filed a lawsuit against Ripple Labs, accusing the company of illegally selling XRP tokens. This led to XRP being delisted from major exchanges and a drop in its market value. After legal battles spanning over four years, Ripple's CEO, Brad Garlinghouse, announced the SEC’s decision to withdraw the case. In a social media video, he stated, "I’m finally able to announce that this case has ended—it’s over."
XRP Price Surge: By the Numbers
The news of the lawsuit’s dismissal acted as a catalyst for XRP’s price increase. On March 19, 2025, XRP opened at $2.24 and closed at $2.54, a 13.39% increase. On March 20, the price adjusted slightly, declining by 3.15% to $2.46. This surge highlights the market's positive reception to regulatory clarity regarding XRP.
Broader Market Implications and Industry Reactions
XRP’s rally created a ripple effect on the broader cryptocurrency market. Bitcoin rose by 2.2%, reaching $84,096, and Ethereum increased by 6.6%, trading at $2,031. These changes emphasize the interconnected nature of the crypto market. The conclusion of the SEC’s lawsuit against Ripple is seen as a landmark moment for the crypto industry. Garlinghouse emphasized, "Today is a victory and a long-overdue surrender by the SEC." The development could lead to clearer guidelines and a more supportive environment for cryptocurrency innovation.
The SEC’s decision to drop its lawsuit against Ripple Labs marks a pivotal moment in the cryptocurrency industry’s evolution. The subsequent surge in XRP’s price reflects renewed investor confidence and may signal a shift towards more supportive regulatory frameworks for digital assets in the future.
