SEC Drops Ripple Lawsuit; XRP Surges, Industry Celebrates Victory

On March 19, 2025, the SEC dropped its lawsuit against Ripple Labs, a move hailed by CEO Brad Garlinghouse as a "victory for the industry." The lawsuit, initiated in 2020, alleged an unregistered $1.3 billion securities offering involving XRP. While a 2023 ruling found secondary market XRP sales were not securities transactions, institutional sales were deemed securities, resulting in a $125 million fine for Ripple. Following the announcement, XRP's price jumped over 8% to exceed $2.50. Garlinghouse noted the resolution allows Ripple to focus on its $2 billion crypto ventures. The SEC's decision, pending a commission vote, marks a significant shift, potentially influenced by a more crypto-friendly stance under President Donald Trump's administration. The dismissal eases pressure on Ripple and the broader crypto market, with implications for how cryptocurrencies are classified.