Mar 20, 2025, 11:53 AM
Mar 20, 2025, 11:53 AM

Ripple's SEC case dropped, XRP price surges

Highlights
  • XRP's price surged over 8% following the announcement of the SEC dropping its case against Ripple.
  • The SEC had accused Ripple of raising $1.4 billion by selling XRP without proper registration, marking a significant legal battle.
  • Brad Garlinghouse announced the end of the case, suggesting a brighter future for the cryptocurrency landscape in the U.S.
Story

In the United States on March 20, 2025, the price of XRP rose considerably, increasing by over 8% after Ripple's CEO, Brad Garlinghouse, announced that the SEC had dropped the long-standing case against the cryptocurrency company. This lawsuit had been initiated in late 2020 when the SEC accused Ripple and its executives of raising $1.4 billion through the sale of XRP without proper securities registration. The legal battle lasted four years, significantly impacting Ripple's operations and the broader cryptocurrency market sentiment during that timeframe. The SEC's original stance under the Biden administration classified digital assets, like cryptocurrencies, as securities, thus subjecting them to stricter regulatory scrutiny. The legal implications of this classification marked a notable conflict between burgeoning innovation in the crypto space and traditional financial regulatory frameworks. Under previous leadership, easier regulations were promised by the Trump administration, aiming to position the U.S. as a leader in the cryptocurrency sector. Brad Garlinghouse voiced strong criticism against the SEC's approach, suggesting they overstepped their authority in prosecuting Ripple. He celebrated the case's dismissal in a video posted on social media, indicating a hopeful outlook for Ripple's future and the potential for cryptocurrency to flourish without burdensome regulations. Moreover, in recent months, other crypto-related companies, such as Coinbase and Robinhood, experienced similar reliefs when the SEC dropped cases against them, indicating a shift in regulatory attitudes. The decision marks a turning point for Ripple and the entire cryptocurrency market. It underscores the growing influence of the cryptocurrency industry on U.S. politics and regulatory policies, especially following the election of leaders more favorable toward crypto. Garlinghouse has emphasized the possibility of creating government reserves that include various digital assets, a proposal that has sparked both interest and controversy within the crypto community. The broader implications of regulatory changes are anticipated to shape the future landscape of cryptocurrency investment and usage in the U.S. economy.

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