SEC drops appeal in Ripple lawsuit: What it means for crypto

The U.S. Securities and Exchange Commission (SEC) has decided to withdraw its appeal against Ripple Labs, bringing an end to a legal battle that has lasted four years over whether XRP should be classified as a security.

Ripple’s CEO, Brad Garlinghouse, called it a major win—not just for the company but for the entire crypto industry—suggesting this could be a step toward clearer regulations. That said, the broader implications for cryptocurrency oversight remain uncertain.

The dispute started in 2020 when the SEC sued Ripple and two of its executives, alleging they conducted a $1.3 billion unregistered securities offering. The lawsuit triggered a sharp selloff, with XRP sinking about 25% to around 35 cents at the time.

In its original filing, the SEC stated:

“Because Ripple never filed a registration statement, it never provided investors with the material information that every year hundreds of other issuers include in such statements when soliciting public investment. Instead, Ripple created an information vacuum such that Ripple and the two insiders with the most control over it—Larsen and Garlinghouse—could sell XRP into a market that possessed only the information Defendants chose to share about Ripple and XRP.”

Ripple pushed back, denying that XRP is a security and questioning the timing of the lawsuit. The company has positioned XRP as a tool for fast cross-border payments, but the SEC argued it should be treated as a security—similar to a company stock—rather than a currency.

“This is it – the moment we’ve been waiting for,” Garlinghouse posted on X, describing the SEC’s decision as “a resounding victory” for Ripple and the crypto space.

JUST IN: 🇺🇸 Ripple CEO Brad Garlinghouse declares victory after SEC officially drops lawsuit.

“This case has ended. It’s over.” pic.twitter.com/m2wSaCuZMV

— Watcher.Guru (@WatcherGuru) March 19, 2025

“Today, Ripple moves forward—stronger than ever. This landmark case set a precedent for the domestic crypto industry. With the SEC dropping its appeal, Ripple is now in the driver’s seat and we’ll evaluate how best to pursue our cross-appeal. Regardless, today is a day to celebrate this victory,” Ripple said in a statement on X.

Founded in 2012 by Arthur Britto, Chris Larsen, Paul Cafardo, and Ryan Fugger, Ripple is a San Francisco-based blockchain startup that offers a real-time gross settlement system, currency exchange, and remittance network. The company’s RippleNet platform connects banks, payment providers, and digital asset exchanges to streamline international transactions.

For now, XRP remains under pressure as investors assess the fallout. The SEC’s decision to withdraw its appeal marks a turning point, but regulatory uncertainty surrounding crypto is far from settled.