XRP News Today: Grassroots Holders Helped Legal Victory Redefine XRP's Fate

Ripple's protracted legal dispute with the U.S. Securities and Exchange Commission (SEC) concluded in August 2025 with both parties dropping their appeals, marking a pivotal moment for the XRP token. Central to this outcome was the influence of the XRP Army—a collective of retail tokenholders who actively contributed to the defense of Ripple. John Deaton, a crypto attorney and advocate for XRP holders, emphasized the undeniable impact of their efforts. In a public post on X, he stated that denying the XRP Army's role was either due to ignorance or deliberate misinformation, as Judge Analisa Torres explicitly cited their affidavits and Deaton’s amicus brief in her ruling that XRP itself is not a security [1].

Deaton highlighted that the judge’s decision rested on key evidence from over 2,000 exhibits, including the amicus brief and 2,000 XRP holder affidavits. This evidence helped demonstrate that XRP was being used for practical purposes beyond investment. Ripple’s deputy general counsel, Deborah McCrimmon, credited the XRP Army for their unpaid research, which uncovered SEC communications and regulatory statements that supported Ripple’s “fair notice” defense. These findings exposed inconsistencies in the SEC’s approach to crypto regulation, strengthening Ripple’s case [2].

The ruling in July 2023 was a turning point for XRP, as it was determined that XRP sold on public exchanges did not qualify as a security. Institutional sales, however, were classified as such. This distinction allowed Ripple to operate with greater clarity while still facing partial regulatory constraints. The outcome also had immediate market effects, with XRP’s price surging 72% in the weeks following the ruling. The token later reached an all-time high of $3.65 in July 2025 before stabilizing near $2.85 [3].

The XRP Army’s involvement was not merely a legal formality; it represented a grassroots movement that transformed public perception of XRP. Initially dismissed as a disorganized group of retail investors, the XRP Army became a key player in the case. Their efforts included submitting affidavits, lobbying, and orchestrating social media campaigns to pressure regulators and maintain public awareness. Ripple’s leadership acknowledged that this community-driven strategy was instrumental in influencing the court’s decision. McCrimmon noted that the research and advocacy from the XRP Army was worth the equivalent of thousands in legal fees that could have otherwise been spent on external counsel [4].

The case’s conclusion offers Ripple a unique position in the crypto industry. Unlike other major cryptocurrencies such as Bitcoin or Ethereum, which rely on informal SEC guidance, XRP now has a binding legal precedent validating its status outside the securities framework when sold on exchanges. This clarity is expected to attract institutional investors and facilitate broader adoption. Additionally, it removes a long-standing regulatory risk, allowing Ripple to focus on global expansion and innovation, including the development of its RLUSD stablecoin and enhanced XRP Ledger capabilities [5].

While the case’s resolution was a victory for Ripple, it also underscores the evolving regulatory landscape for digital assets. The XRP Army’s success in influencing the court’s decision highlights the growing power of community action in shaping legal and market outcomes. As Deaton noted, the case proved that individual efforts, when unified, can drive significant change in an industry often perceived as dominated by large institutions. This precedent may embolden other crypto communities to take a more active role in future legal and regulatory challenges.

Source:

[1] Ripple-SEC News: 'XRP Army' Credited by Lawyers in ... (https://www.coindesk.com/markets/2025/09/04/xrp-army-credited-with-helping-ripple-tilt-case-against-sec)

[2] XRP Army made a difference in Ripple's SEC lawsuit (https://cointelegraph.com/news/xrp-army-helped-ripple-win-sec-lawsuit)

[3] Ripple vs. SEC: How the lawsuit strengthened XRP's ... (https://cointelegraph.com/explained/ripple-vs-sec-how-the-lawsuit-strengthened-xrps-narrative)

[4] John Deaton Credits XRP Army Role in Ripple vs SEC Case (https://coinpedia.org/news/xrp-armys-courtroom-power-how-retail-holders-helped-ripple-defeat-the-sec/)