- The SEC drops its lawsuit against Ripple, ending a years-long battle over $1.4 billion in XRP sales.
- Ripple’s Trump connections raise speculation about political influence in the SEC’s decision to withdraw its case.
In a significant development, the U.S. Securities and Exchange Commission (SEC) has dropped its case against Ripple Labs, the blockchain company behind Ripple [XRP].
The decision comes after a long and contentious legal battle that began in 2020, with Ripple’s CEO Brad Garlinghouse celebrating the move as a victory for both his company and the broader crypto market.
Ripple’s ties to President Donald Trump have also sparked discussions on whether political influence played a role in the SEC’s retreat.
The legal battle that shook crypto
In December 2020, the SEC filed a lawsuit against Ripple Labs, alleging that its $1.4 billion XRP sales were unregistered securities offerings.
The case became a pivotal moment in the crypto industry. It influenced debates on U.S. digital asset classification and regulation. Ripple argued that XRP should not be deemed a security. The company claimed XRP functioned like Bitcoin and Ethereum.
A significant development occurred in July 2023, when a federal judge ruled that XRP tokens sold on public exchanges were not securities. However, the court determined that institutional sales of XRP were subject to securities laws.
Ripple secured a partial victory, though it faced a proposed $125 million fine, which was deferred due to an appeal.
On the 19th of March 2025, Ripple CEO Brad Garlinghouse announced that the SEC had dropped the appeal, officially concluding the years-long legal battle.
Trump connections and political influence
The SEC’s decision to withdraw the case has raised questions about potential political motivations. Garlinghouse has well-documented ties to the Trump administration, having attended a crypto summit at the White House and shared photos with the former president.
Ripple also made a $5 million donation to Trump’s inaugural committee, further fueling speculation about political influence over regulatory decisions.
While the SEC has not officially explained its decision, the move aligns with broader shifts in the agency’s approach to crypto enforcement.
Under the current administration, the SEC has backed away from several legal battles against crypto firms, including Coinbase and Kraken cases.
Market reaction and future outlook
Following the announcement, XRP surged over 10%, reaching $2.50, at press time, as investor confidence returned.
The ruling provides much-needed regulatory clarity for Ripple and could set a precedent for future crypto-related cases.
Source: CoinMarketCap
However, industry analysts caution that while this specific battle is over, broader regulatory discussions about digital assets are far from settled.
With the SEC stepping back, crypto firms may have more breathing room to develop within the U.S. market.
