Ripple Wins SEC Case, XRP Surges 10%

The four-year legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has finally concluded. The lawsuit, which began under the Biden administration and was led by SEC Chair Gary Gensler, ended during the Trump administration. With Trump’s support for the crypto sector, several cases against the SEC have been dismissed under the new leadership. The conclusion of this prominent case has sparked curiosity among investors about Ripple’s next steps in its business operations and the potential impact on the XRP price.

Ripple’s CEO, Brad Garlinghouse, announced the end of the SEC-Ripple case at the Digital Asset Summit in New York. This statement comes four years after the SEC initiated a lawsuit against Ripple, alleging a $1.3 billion unregistered securities offering in December 2020. The legal battle has finally come to a close, marking a significant milestone in the cryptocurrency industry.

In 2023, Judge Analisa Torres ruled that while Ripple’s institutional sales violated securities laws, its retail sales did not. This partial victory for Ripple was followed by a $125 million fine imposed on the company. The SEC subsequently filed a notice of appeal, but the recent developments have led to the dismissal of the case. This outcome has been influenced by Trump’s favorable stance on the crypto market and Ripple’s contributions during the presidential race, including donations to the Congress-focused Fairshake super PAC and Trump’s inaugural fund.

Following the announcement of the lawsuit’s conclusion, the price of XRP saw a surge of over 10%. With Ripple overcoming its regulatory challenges, projections suggest that the price of XRP could surpass $5 in 2025. The resolution of the lawsuit has also cleared the way for Ripple to launch its long-awaited Initial Public Offering (IPO). The company’s recent valuation at $11.3 billion, along with its share repurchases, has intensified these beliefs.

Ripple’s recent share buybacks have valued the company at $11.3 billion, fueling speculation about its future plans. An IPO would not only provide lucrative exit opportunities for early investors but also strengthen Ripple's market presence. The expert predicts that a favorable outcome in the XRP lawsuit could pave the way for expanding Ripple's network, potentially attracting major banks such as Bank of America, American Express, or Santander to join RippleNet.

Ripple is already making moves with its Central Bank Digital Currencies (CBDC) initiatives, having already launched pilots in countries such as Colombia and Palau. The recent resolution to their lawsuit could significantly highlight Ripple’s profile and accelerate the adoption of CBDCs worldwide. In addition, Ripple’s stablecoin, RLUSD, is gathering momentum, with a notable issuance of 28.2 million RLUSD.

Furthermore, the approval of an XRP-backed Exchange-Traded Fund (ETF) is looking increasingly promising. The end of the lawsuit removed regulatory barriers, potentially attracting substantial interest from institutional investors. The positive news has led to widespread celebrations and community engagement, fostering a sense of optimism within the Ripple community. However, the outcome and timeline of the Ripple vs. SEC case remain uncertain, with experts split on the likelihood of an early resolution. Some predict a potential conclusion as early as March or April, while others forecast a delay until July or August.

Despite the ongoing uncertainty, the resolution of the lawsuit has provided clarity and a sense of direction for Ripple's future. The company is poised for significant developments, including an IPO, new partnerships, and advancements in CBDCs and stablecoin projects. The resolution of the lawsuit has not only marked a major victory for Ripple but also set a precedent for future cryptocurrency disputes, paving the way for increased adoption and innovation within the industry.