In a major development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has officially dropped its landmark lawsuit against Ripple, according to CEO Brad Garlinghouse.
The decision marks a turning point in the ongoing regulatory battles that have defined the crypto landscape over the past few years.
The SEC had previously accused Ripple of illegally raising funds through XRP sales, claiming the token was an unregistered security. The case, first filed in December 2020, became a pivotal moment in crypto regulation.
Why Did the SEC Drop the Case?
The SEC’s move follows a shift in U.S. crypto regulation policy under the Trump administration, which has taken a more pro-crypto stance. Several other enforcement actions against crypto firms, including Coinbase and Binance, have also been dismissed or paused in recent weeks.
Garlinghouse revealed the news on X (formerly Twitter), stating that Ripple had finally won its fight against the SEC. A Ripple spokesperson later confirmed the decision, while the SEC has yet to issue an official statement.
What This Means for Ripple and XRP
With the case dropped, XRP’s status in the U.S. remains a key focus. The SEC’s lawsuit initially caused major price volatility, but the crypto community now anticipates a more stable and regulated future for XRP.
Additionally, Trump has proposed including XRP in a strategic U.S. crypto reserve, further fueling speculation about the token’s long-term role in the economy. Asset managers like Bitwise have already filed applications for XRP-based ETFs.
The Bigger Picture: Changing Crypto Regulations
The SEC’s case against Ripple was a watershed moment for the industry, setting the tone for regulatory scrutiny over crypto assets. The dismissal of this case and others like it suggests a softer stance on crypto under Trump’s leadership.
Ripple’s political influence has also played a role, with Garlinghouse and other executives maintaining close ties with the administration. The company donated $5 million in XRP to Trump’s inauguration fund and held high-profile meetings at Mar-a-Lago.
Answering Popular Questions
Why did the SEC drop the case against Ripple?
The SEC abandoned the case as part of a broader rollback of crypto enforcement actions under the Trump administration.
What does this mean for XRP?
XRP’s legal clarity in the U.S. improves, making it a stronger candidate for institutional adoption and ETF approvals.
Will other crypto cases be dropped?
Yes, similar lawsuits against Coinbase, Binance, and Uniswap have also been paused or dismissed.
