- The SEC drops its lawsuit against Ripple and ends a long struggle of more than $ 1.4 billion in the XRP sale.
- The Trump connections of Ripple increase speculation about political influence in the decision of the SEC to withdraw the case.
In an important development, the US Securities and Exchange Commission (SEC) has dropped its business against Ripple Labs, the blockchain company behind Ripple [XRP].
The decision comes after a long and controversial legal battle that started in 2020, with Ripple’s CEO Brad Garlinghouse who celebrates the move as a victory for both his company and the wider crypto market.
Ripple’s ties with President Donald Trump also led conversations about whether political influence played a role in the retreat of the SEC.
The legal struggle that crypto shook
In December 2020, the SEC filed a lawsuit against Ripple Labs, claiming that the sale of $ 1.4 billion XRP was not registered securities supply.
The case became a crucial moment in the crypto industry. The influenced debates about the classification and regulations of American digital assets. Ripple argued that XRP should not be considered a security. The company claimed that XRP functioned as Bitcoin and Ethereum.
An important development took place in July 2023, when a federal court ruled that XRP tokens that were sold at public fairs were not effects. However, the court established that the institutional sale of XRP was subject to securities laws.
Ripple caused a partial victory, although it was confronted with a proposed fine of $ 125 million, which was postponed due to a profession.
On March 19, 2025 Brad Ripple CEO Garlinghouse announced That the SEC had dropped the profession and officially ended the legal battle of years.
Trump connections and political influence
The decision of the SEC to withdraw the case has asked questions about possible political motivations. Garlinghouse has well-documented ties with the Trump administration, after he had attended a crypto summit in the White House and shared photos with the former president.
Ripple also made a donation of $ 5 million to Trump’s inaugural committee, which further feeds speculation on political influence on regulatory decisions.
Although the SEC has not officially explained its decision, the relocation corresponds to broader shifts in the approach of the office to crypto enforcement.
Under the current administration, the SEC has withdrawn from various legal fights against crypto companies, including coinbase and cracking things.
Market reaction and future prospects
After the announcement, XRP increased more than 10%Reaching $ 2.50, at the time of press, when the trust of investors returned.
The pronunciation offers the much needed regulatory clarity for Ripple and could be a precedent for future crypto-related matters.
Source: Coinmarketcap
However, industrial analysts warn that although this specific battle is over, broader regulatory discussions about digital assets are far from regulated.
With the SEC step back, crypto companies can have more breathing space to develop on the American market.
