The long-standing conflict between Ripple and the U.S. Securities and Exchange Commission (SEC) has finally come to an end. After four years of legal battles, Ripple announced that the SEC officially dropped its lawsuit, marking a major win for both the company and the broader cryptocurrency industry.
Ripple’s Legal Battle and Victory
The SEC initially sued Ripple in December 2020, alleging that the company raised $1.3 billion through the sale of XRP without registering it as a security. However, in a pivotal decision in July 2023, a federal judge ruled that XRP is “not necessarily a security,” significantly weakening the SEC’s case.
Despite spending $150 million in legal expenses, Ripple emerged victorious. Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized the significance of this win, stating, “Ripple stands alone as the company that fought back and won on essential legal questions.”
A Turning Point for Crypto Regulation
Ripple’s victory is not just an isolated win—it marks a broader shift in how the U.S. government handles cryptocurrency regulation. The SEC has recently dropped or put on hold multiple cases against major crypto firms, including Coinbase, Kraken, Binance, and Robinhood.
Under the new administration, President Donald Trump has taken a pro-crypto stance, appointing David Sacks as the White House AI and crypto czar. The SEC, now led by Hester Peirce and its newly formed Crypto Task Force, is shifting from enforcement-driven regulation to engagement with industry leaders.
Policy Reversals and Market Impact
One of the biggest changes under the new SEC leadership was the repeal of Staff Accounting Bulletin 121 (SAB 121), a rule that previously required banks to treat crypto holdings as liabilities. This shift is expected to drive greater institutional adoption of cryptocurrencies.
Major financial institutions, including Goldman Sachs, Morgan Stanley, and Bank of America, have responded positively to the changing regulatory landscape. XRP surged 11% following Ripple’s announcement, reflecting renewed investor confidence.
The Future of Crypto in the U.S.
With the SEC pulling back on legal enforcement and the White House actively supporting crypto, the industry is set for a new era of growth. Trump’s commitment to making the U.S. a “crypto capital” is fueling optimism among investors and businesses alike.
While Ripple’s legal battle has ended, the fight for clearer crypto regulations continues. As Stuart Alderoty put it, “While this chapter is closed, the fight for fair and transparent crypto regulation continues.
