Breaking: XRP soars upon announcement that SEC will drop its appeal against Ripple

Breaking: XRP soars upon announcement that SEC will drop its appeal against Ripple

  • 19.03.2025 16:33
  • fxstreet.com
  • Keywords: Ripple, XRP

XRP prices surge after SEC drops appeal against Ripple, following negotiations for better terms than Judge Torres' August ruling. Crypto markets react positively as Ripple's legal battle concludes.

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Estimated market influence

Ripple

Positivesentiment_satisfied
Analyst rating: N/A

The SEC dropping its appeal against Ripple is a significant victory for the company, leading to an increase in XRP's value.

SEC

SEC

Negativesentiment_dissatisfied
Analyst rating: —

The SEC had sued Ripple but dropped their appeal, impacting their regulatory stance on crypto assets.

Context

Analysis of XRP's Surge and Market Implications

Market Impact

  • XRP Price Increase: XRP has surged by 12% in the past 24 hours following the SEC's decision to drop its appeal against Ripple.

Case Background

  • Legal Battle Timeline:
    • The SEC sued Ripple in December 2020, alleging that XRP sales were unregistered securities worth $1.3 billion.
    • In July 2023, Judge Analisa Torres ruled that XRP sales to retail investors are not securities but fined Ripple $125 million and imposed an injunction in August 2024.
    • The SEC appealed the ruling in January 2025, arguing that XRP sales to retail investors still constituted securities.

Competitive Dynamics

  • Ripple's Position: With the SEC dropping its appeal, Ripple is now in a stronger position. They may pursue their cross-appeal and potentially challenge the injunction.
  • Anticipation of ETF Approvals: Market participants expect the SEC to approve XRP ETF filings from issuers like Canary Capital, CoinShares, Franklin Templeton, WisdomTree, 21Shares, and Bitwise.

Strategic Considerations

  • Regulatory Shifts: The SEC's decision reflects a shift in their approach towards crypto companies, similar to cases involving Coinbase, Uniswap, OpenSea, and Robinhood.
  • Ripple's Negotiation Success: Ripple's legal team secured more favorable terms than the initial court ruling, contributing to the positive market reaction.

Long-Term Effects

  • Industry Implications: This decision may encourage other crypto companies to challenge existing regulations, potentially leading to a more favorable regulatory environment for cryptocurrencies.
  • Market Sentiment: The surge in XRP highlights improved investor sentiment and confidence in Ripple's legal standing, which could attract further investment.

Regulatory Impact

  • Potential Regulatory Changes: The outcome may influence the SEC's approach towards cryptocurrency assets, possibly leading to clearer guidelines or policies.
  • Injunction Status: While the injunction remains, its enforcement is now under review, which could allow Ripple to resume certain operations without fear of immediate legal action.

Conclusion

The SEC's decision to drop their appeal against Ripple marks a significant milestone for both the company and the cryptocurrency market. This development not only boosts XRP's value but also signals a potential shift in regulatory strategies toward crypto assets. Market participants are optimistic about the implications for XRP ETFs, while Ripple is poised to evaluate its next strategic moves.