SEC Drops Ripple Appeal, XRP Surges 10%

The U.S. Securities and Exchange Commission (SEC) has officially dropped its appeal against Ripple, marking a significant victory for the blockchain company and the broader crypto industry. This decision comes after a four-year legal battle that began in December 2020, when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales. The pivotal ruling in August 2024 determined that XRP is not a security when traded on public exchanges, although the court upheld penalties for institutional sales, ordering Ripple to pay $1.25 million.

Ripple CEO Brad Garlinghouse hailed the SEC's decision as a "resounding victory" for Ripple and the crypto industry. He emphasized that the case had proven Ripple operated within legal boundaries 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 U.S. crypto market. Alderoty added that with the SEC dropping its appeal, Ripple is now in the driver’s seat and will evaluate how best to pursue its cross appeal.

The regulatory environment shifted significantly following Donald Trump’s electoral victory 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 U.S.

Following the announcement, XRP surged by over 10% to $2.47, cementing its position as one of the best-performing digital assets. The token has already gained over 200% during the past months, indicating strong investor optimism. The dismissal of the SEC's appeal is expected to open the door to new growth opportunities for XRP, including its potential inclusion in U.S. digital asset reserves and the launch of exchange-traded funds (ETFs) in the near future. This development is likely to further solidify XRP's status in the crypto market and attract more institutional investors.

Garlinghouse also touched on the increased interest in cryptocurrency exchange-traded funds (ETFs) in the US. In his view, 11 ETF filings are pending with the SEC. Major financial institutions such as Bitwise and Franklin Templeton are among the major players vying for approval. Garlinghouse forecasts that most of the ETFs will go live in the second part of the year, indicating a rise in institutional interest and market maturity.

Garlinghouse’s remarks identify that XRP remains a serious contender in the evolving crypto landscape. Even if it was not explicitly stated in the executive order, the gateway to inclusion in the U.S. crypto reserve is still open in the future. On top of this, the rising adoption of crypto ETFs and shifting regulatory environments can make XRP ripe for explosive expansion within the coming months.

XRP’s exclusion from Trump’s executive order is surprising, but Brad Garlinghouse remains optimistic about the future. With greater institutional interest, increasing demand for crypto ETFs, and a changing regulatory environment, XRP appears well-positioned for a potential comeback. The next series of regulatory actions and market adjustments may decide XRP’s eventual position in the U.S. digital asset economy.