XRP News Today: XRP Drops 17.5% as Ripple Faces SEC Legal Battle Political Scrutiny and Executive Sales

Ripple’s legal and market challenges have escalated amid renewed scrutiny over its political affiliations, executive actions, and the unresolved outcome of its years-long battle with the U.S. Securities and Exchange Commission (SEC). The controversy intensified on X (formerly Twitter), where users debated Ripple’s alleged support for Vice President Kamala Harris during the 2024 presidential election, sparking divisions within the XRP community. Critics argue that such political stances clash with the interests of XRP holders, many of whom are reportedly aligned with Donald Trump. This dynamic has fueled speculation about whether Ripple is waging a war not just with the SEC but also with its own token holders [1].

The origins of the SEC lawsuit have also come under renewed scrutiny. Former SEC lawyer Marc Fagel clarified on social media that the case was filed under the Trump administration, led by former SEC Chair Jay Clayton, not Gary Gensler, who took over nearly five months later. Fagel emphasized that the decision to sue was made weeks before Clayton’s departure, a move aimed at avoiding delays in the case [1]. Despite Ripple CEO Brad Garlinghouse’s assertion that the legal battle is “behind them,” the unresolved status of the lawsuit—potentially culminating in a settlement—continues to cast a shadow over market confidence.

Meanwhile, XRP’s price volatility has drawn sharp criticism. In July 2025, co-founder Chris Larsen offloaded $344 million worth of XRP across multiple exchanges, triggering a 17.5% drop in the token’s price to $3.02 from $3.66. Blockchain tracking tools revealed that Larsen’s sales—part of a broader 106 million XRP offloading since January 2025—exacerbated concerns about market manipulation and liquidity risks. Critics argue that the concentration of XRP in Larsen’s wallet, which holds an estimated 2.6 billion tokens, undermines decentralization claims and highlights structural vulnerabilities in Ripple’s governance [1].

The SEC’s delayed approval of Bitwise’s crypto ETF further amplified uncertainty. XRP fell 6% as investors grappled with regulatory ambiguity, even after Ripple secured a legal victory in 2025. Analysts note that the firm’s leadership remains under intense scrutiny, with Larsen’s large-scale sales and Ripple’s opaque communication contributing to a fragile investor sentiment. Garlinghouse has separately warned of rising scams targeting XRP holders, urging caution amid heightened volatility [2].

Retail investors have borne the brunt of recent price swings, with social media posts highlighting financial strain on smaller traders. The interplay between executive actions and market dynamics underscores XRP’s precarious ecosystem. Larsen’s July 2025 transactions, including $26 million and $175 million offloads to Coinbase and other exchanges, coincided with historical price peaks, fueling speculation about strategic asset management or liquidity needs. Analysts attribute XRP’s sharp corrections to shallow order books and selling pressure, contrasting with the deeper liquidity seen in assets like Ethereum [3].

As debates over Ripple’s governance intensify, the question of whether the firm is at odds with the SEC or its own token holders remains unresolved. While Ripple emphasizes regulatory compliance and operational flexibility, critics argue that centralized control and the timing of executive sales erode trust. The outcome of ongoing legal and market developments could reshape XRP’s trajectory, with implications for Ripple’s reputation and the broader crypto landscape [1].

Sources:

[1] [Crypto Markets Retreat After Liquidation of $737 Million](https://www.mitrade.com/insights/news/live-news/article-3-983654-20250724)

[2] [Software Dev Sends Important Message to XRP Holders ...](https://timestabloid.com/software-dev-sends-important-message-to-xrp-holders-amid-price-dump/)

[3] [Ethereum Is Pumping, but XRP Could Make Even Bigger Gains](https://unchainedcrypto.com/eths-push-for-4000-is-making-headlines-but-price-charts-favor-xrp/)