Ripple’s Victory Marks the End of the SEC’s Crypto War
In Brief
Ripple’s victory over the SEC marks a major turning point for crypto regulation, paving the way for industry growth and clearer legal frameworks in the U.S.
The SEC’s long-running battle with the crypto industry has reached its conclusion. On Wednesday, Ripple announced that the agency had officially dropped its four-year lawsuit, marking a major victory for the company. The case, filed on former SEC Chair Jay Clayton’s last day in office, alleged Ripple raised $1.3 billion through unregistered XRP sales.
Ripple Securing a Historic Win
Ripple’s success against the SEC has strong ramifications for the whole crypto ecosystem. Other companies, including Coinbase, Kraken, Robinhood, Binance, and OpenSea, had either been attacked by the SEC or settled similar lawsuits or investigations.
However, Ripple’s case was the most publicized and combative. This moment marks a key turning point for the crypto industry in that it explicitly rebukes regulation by the SEC.
Stuart Alderoty, Ripple’s Chief Legal Officer, stressed that the battle against the SEC has resulted in not only a legal win for Ripple, but a strong statement on the future of crypto regulation in the U.S. “Ripple stands alone as the company that fought back — and won on essential legal questions,” Alderoty asserted, stressing that the ruling diminishes the reach and strength of the SEC’s past efforts to stifle crypto innovation.
He further noted the irony that Ripple, the first major case the SEC pursued, is now the last one the agency is walking away from. Ripple’s legal battle, which cost the company $150 million, also challenged former SEC Chair Gary Gensler’s antagonistic stance towards crypto.
The victory isn’t just Ripple’s—it marks a turning point for the entire crypto community. It has spurred momentum for broader political support, particularly within the crypto-friendly movement, and signals a potential shift in U.S. regulatory policy. The case helped rally support for a new crypto-friendly agenda, even influencing former critics like Donald Trump.
Implications for Ripple and XRP
The settlement between Ripple and the SEC brings significant changes for the company and its XRP token. Ripple will pay $50 million and regain access to $75 million previously held in escrow. In addition, the SEC will lift a prior injunction that had prohibited institutions from selling XRP.
This move is expected to enhance Ripple’s financial operations, especially its institutional partnerships, such as its collaboration with Bank of America, which had explored blockchain solutions using Ripple’s ledger. More importantly, the settlement signals a shift in regulatory attitudes, offering Ripple greater operational freedom.
Legal experts believe this could pave the way for clearer digital asset legislation, benefiting ongoing cases and instilling greater confidence among investors and crypto exchanges.
The Market Reaction
In fact XRP went on a massive run as soon a Ripple won the court case, it jumped over 20% in a matter of days. Trading volume also soared, reaching $3 billion in daily transactions shortly after the ruling, in what is among the largest market reactions to a legal outcome in the crypto universe.
This resurgence was driven by increased confidence from investors who believed that since Ripple agreed to settlement with the regulator, the regulatory risk had diminished, which would encourage other enterprises to potentially explore XRP payment solutions.
Prior to the ruling, XRP traded between $0.40 and $0.50, but after the October 2024 decision, its price jumped to $0.60. This market shift highlights how legal clarity can significantly impact investor sentiment and market behavior.
In the weeks that followed the decision, XRP flashed reassuring performance, suggesting wider enthusiasm about Ripple’s possibility to move forward and how XRP might be engaged more broadly as a payment solution in the cross-border payments process.
New leadership
With new leadership, the SEC’s approach to crypto regulation is evolving. Rather than an adversarial style of enforcement, it is engaging the industry — with Hester Peirce leading the SEC’s newly formed Crypto Task Force. Her message is clear: the SEC is no longer an enemy, but is working to set forth clear lawful parameters to industry participants.
A major policy reversal came when the SEC rescinded Staff Accounting Bulletin 121, a rule that had required banks to treat crypto assets as liabilities. Introduced in 2022 and pushed by former SEC Chair Gary Gensler, this rule was seen as a significant obstacle to institutional adoption of digital assets. Peirce celebrated the rule’s removal, calling it a victory for crypto.
This shift was further reinforced at the World Economic Forum in Davos when the CEOs of such firms as Goldman Sachs and Bank of America, indicated that Washington’s stance change could bring back crypto engagement. At the White House, Trump crypto czar, David Sacks, declared that “the war on crypto is over.”
The SEC has recently stepped back from several high-profile cases. Their lawsuits against Coinbase and Kraken were thrown out, they withdrew their Wells Notice against Robinhood’s crypto division, and the Binance investigation was effectively halted.
Ripple’s legal team celebrated the SEC dropping charges against its executives, after arguing for years that the action taken against Ripple and its executives by the SEC was overly aggressive, but with the SEC’s recent shift in direction on these investigations, their fight for clarity on crypto regulation continues.
What the Ruling Means for Other Digital Assets
If Ripple wins, many digital assets could be positively affected. The SEC case against Ripple was America’s first major case of whether a cryptocurrency was a security or not. If XRP is not a security, then a number of other cryptocurrencies, such as Ethereum, Litecoin, Cardano, and Solana, would follow suit in arguing that they, too, were not securities.
This ruling would open the door for many tokens to classify themselves in a reclassified category, thereby removing regulatory burdens for many digital assets.
In regards to Ethereum, the Ripple ruling would positively impact Ethereum’s previous scrutiny as the fundraising for Ethereum was questioned – when Ripple wins, there will be more enthusiasm for investment in DeFi and blockchain technology.
Looking Ahead
Ripple’s settlement with the SEC is a significant turning point for Ripple and the crypto industry. Ripple can now focus on its development, as the fine has decreased and they will have access to the escrowed funds. This decision marks a change in how regulators may view digital assets going forward, and will improve confidence in the marketplace. Ripple is now best positioned to grow its initiatives in cross-border payment, blockchain use case development, and financial partnerships.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
