Ripple Wins Legal Battle as SEC Drops Appeal, XRP Surges 10%

Ripple has achieved a significant milestone in its protracted legal battle with the US Securities and Exchange Commission (SEC). On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had withdrawn its appeal against the blockchain company, marking a pivotal victory for Ripple and the broader cryptocurrency industry.

Garlinghouse celebrated the development, stating, “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.” He emphasized that the case had demonstrated Ripple’s compliance with legal standards and described the SEC’s decision as a turning point for the industry, reinforcing the legitimacy of digital assets.

Ripple’s Chief Legal Officer, Stuart Alderoty, echoed this sentiment, noting that the ruling strengthens Ripple’s position and sets a legal precedent for the US crypto market. Alderoty added, “With the SEC dropping its appeal, Ripple is now in the driver’s seat and we’ll evaluate how best to pursue our cross appeal. Regardless, today is a day to celebrate this victory.”

Following the announcement, XRP surged by over 10% to $2.47. The token has already gained over 200% during the past months, cementing its position as one of the best-performing digital assets.

The legal dispute between Ripple and the SEC began in December 2020 when the regulator accused the company of raising $1.3 billion through unregistered XRP sales. After years of litigation, a pivotal ruling in August 2024 determined that XRP is not a security when traded on public exchanges. However, the court upheld penalties for institutional sales, ordering Ripple to pay $125 million—far less than the nearly $2 billion initially sought by the SEC. Still, the SEC appealed this decision.

The regulatory environment shifted significantly following the electoral victory of Donald Trump in 2024, leading to a more pro-crypto approach following Gary Gensler’s exit from the financial watchdog. Under the new leadership of Acting Chair Mark Uyeda, the SEC has taken a less aggressive stance on digital assets, dismissing lawsuits against major crypto firms.

Reports have since suggested that the new SEC leadership could classify XRP as a commodity, redefining how digital assets are regulated in the US. This shift in regulatory approach has been welcomed by the crypto industry, which has long sought clarity on the legal status of digital assets.