XRP Drops 6.11% Amid SEC Case Dismissal and Regulatory Clarity

On May 29, 2025, XRP fell 6.11% over 24 hours to $2.34825, despite a 388.85% monthly gain and 888.84% annual rise. The cryptocurrency’s 7-day performance showed a 142.5% decline.

SEC Ends Years-Long Legal Battle Over XRP’s Classification

The U.S. Securities and Exchange Commission (SEC) dismissed its case against Ripple Labs on May 28, 2025, ending a nearly six-year dispute over whether XRP qualifies as a security. The decision followed a reported $3.6 billion settlement, which required Ripple to halt XRP sales that the SEC alleged violated federal securities laws. The terms included ongoing compliance measures and oversight of future token sales.

Market Reactions Mixed Despite Regulatory Milestone

While the settlement marked a critical win for Ripple, XRP’s price dropped in immediate trading, reflecting profit-taking by investors. Analysts noted the disconnect between regulatory clarity and market sentiment, with some attributing the decline to lingering uncertainty about XRP’s long-term utility.

Ripple CEO Highlights Regulatory Progress and Institutional Partnerships

Brad Garlinghouse, Ripple’s CEO, stated the dismissal “provides clarity to the crypto market and reaffirms XRP’s role in cross-border payments.” He emphasized ongoing collaborations with financial institutions to integrate XRP into payment systems, citing partnerships with banks and payment processors as key to driving adoption.

Analysts Project Near-Term Price Gains Amid Adoption Hopes

Analysts project XRP could see a 20% price increase in the next quarter if adoption rates among payment processors and banks accelerate. This forecast hinges on Ripple’s ability to solidify partnerships and demonstrate XRP’s efficiency in reducing transaction costs.

European Payment Network Integrates XRP for Cross-Border Settlements

Ripple announced a collaboration with a European payment network to deploy XRP in real-time settlement processes. The partnership aims to streamline transactions between financial institutions, leveraging XRP’s blockchain for faster and cheaper cross-border transfers.

Trading Volumes and Liquidity Dynamics

XRP’s 24-hour trading volume dipped 8% compared to the prior day, though institutional interest in the asset rose, per internal Ripple data. The decline in volume was attributed to reduced speculative activity following the legal resolution, with investors focusing instead on long-term fundamentals.

Regulatory Outlook and Future Risks

While the SEC’s dismissal removes a major overhang, risks persist. Regulatory scrutiny in other jurisdictions could still impact XRP’s valuation. Ripple’s compliance with settlement terms remains a critical factor for sustaining investor confidence.

The XRP ecosystem now shifts focus to execution of partnerships and proof of utility, with market performance likely tied to tangible adoption milestones.