BREAKING: SEC Drops Ripple Lawsuit After Four-Year Battle, XRP Declared Not a Security

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In a dramatic turn of events, the U.S. Securities and Exchange Commission (SEC) has officially dropped its long-running lawsuit against Ripple Labs, bringing an end to a legal saga that stretched over four years and cost XRP holders an estimated $15 billion in losses. The announcement, made today, confirms that XRP, the cryptocurrency at the heart of the dispute, is not considered a security under current U.S. law—a outcome hailed as a landmark victory for Ripple and the broader crypto industry.

Ripple CEO Brad Garlinghouse broke the news in a jubilant statement on X, calling it “the moment we’ve been waiting for.” “The SEC will drop its appeal—a resounding victory for Ripple, for crypto, every way you look at it,” he wrote. “The future is bright. Let’s build.” In a video address, Garlinghouse reflected on the ordeal, stating, “Sitting here today and reflecting on four years ago, it seems very clear to me that this case was doomed from the start.” The resolution closes a chapter that began in December 2020, when the SEC accused Ripple of raising $1.3 billion through unregistered securities offerings via XRP sales.

The lawsuit’s endgame unfolded swiftly. Last week, reports surfaced that the SEC was weighing whether to reclassify XRP as a commodity—akin to Ethereum—during settlement talks. That speculation proved moot as the agency opted to abandon its appeal entirely. The decision follows a string of SEC retreats from crypto enforcement cases, including those against Coinbase, Uniswap Labs, and Kraken, signaling a potential shift under new leadership. Acting Chairman Mark Uyeda has overseen a pivot away from the aggressive stance championed by former Chair Gary Gensler, who resigned in January.

For Ripple, the victory is bittersweet. A federal judge’s ruling in August 2024 had already imposed a $125 million fine for unregistered institutional XRP sales, far less than the SEC’s initial $2 billion demand. While the court found those sales violated securities laws, it ruled that XRP itself—when sold programmatically or on exchanges—was not a security. The SEC’s decision not to appeal leaves that precedent intact, offering clarity to an industry long plagued by regulatory uncertainty.

“This is the end of the war on crypto,” Garlinghouse declared, pointing to Ripple’s wins as a foundation for future policy. He cited growing political support, including “pro-crypto victories at the ballot box” and hints of a “rational and constructive” approach from incoming government leaders. Yet, the fight isn’t entirely over—Ripple retains the option to pursue a cross-appeal, potentially challenging the $125 million penalty or other aspects of the ruling.

The crypto community wasted no time reacting. XRP’s price, stagnant between $0.50 and $0.60 for much of the past year, had already surged past $1 last week amid rumors of a resolution. Today’s news could fuel further gains, with some analysts eyeing $2 as a near-term target. Beyond the charts, the outcome has broader implications. Garlinghouse called for industry unity, urging crypto players to “leave the tribalism behind” and position the U.S. as the “crypto capital of the world.”

Critics, however, caution against overcelebration. The SEC’s retreat doesn’t erase the scars of a battle that chilled XRP’s market performance and deterred institutional adoption. And while XRP joins Bitcoin and Ethereum as a crypto asset with regulatory clarity, the lack of a comprehensive framework leaves other projects vulnerable. “It’s a win, but it’s not the war,” one X user noted, reflecting a sentiment that the industry’s regulatory reckoning is far from resolved.

For entrepreneurs and innovators, Ripple’s saga offers a dual lesson: resilience can pay off, but reliance on a single regulatory battlefield can cost dearly. As Garlinghouse put it, “We’re all stronger for our prior litigation successes and today’s landmark victory.” Whether that strength translates into a new era for crypto—or just a brief respite—remains to be seen. For now, Ripple’s cauldron of code and courage has brewed a triumph worth watching.

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