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XRP surges after Ripple CEO Brad Garlinghouse says SEC is dropping its lawsuit against the company

  • 19.03.2025 19:35
  • msn.com
  • Keywords: XRP, Ripple, SEC, CNBC

XRP surged after Ripple CEO Brad Garlinghouse claimed the SEC dropped its lawsuit. The price rose nearly 11% to $2.52 as Garlinghouse criticized the lengthy legal battle, calling the system "broken" and questioning the SEC's good faith.

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Estimated market influence

Ripple

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Analyst rating: N/A

Ripple's CEO announced that the SEC is dropping its lawsuit, leading to a surge in XRP price.

SEC

SEC

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Analyst rating: —

The SEC had sued Ripple for breaching securities laws but later dropped the appeal, impacting XRP's market value positively.

Context

Analysis and Summary: XRP Surge After SEC Lawsuit News

Overview

  • XRP Price Surge: XRP surged by nearly 11% to $2.52 following news that the U.S. Securities and Exchange Commission (SEC) is no longer pursuing its appeal against Ripple.
  • Legal Battle Timeline: The SEC had sued Ripple in 2020, claiming it breached U.S. securities laws by selling XRP without registration. This legal battle lasted over four years.

Market Implications

  • Investor Sentiment: The news boosted investor confidence, with XRP's price up more than 390% since 2020 and 20% year-to-date.
  • Regulatory Clarity: The SEC's decision may signal a shift in regulatory enforcement priorities under the new administration, potentially fostering a more favorable environment for crypto assets.

Competitive Dynamics

  • Ripple's Position: Ripple remains the largest holder of XRP (about 95% of total supply), giving it significant control over the token's ecosystem.
  • Market Impact: The ruling could influence other cryptocurrencies and digital asset platforms, as it sets a precedent for regulatory enforcement in the crypto industry.

Long-Term Effects

  • Industry-Wide Reforms: The SEC is forming a new crypto task force to redefine security standards for digital assets, which may shape future market dynamics.
  • Regulatory Shifts: The SEC's recent actions, including scaling back its crypto enforcement unit and closing certain investigations, suggest a potential shift in regulatory focus.

Strategic Considerations

  • Ripple's Strategy: Ripple's CEO emphasized the company's belief in being on the "right side of the law" and highlighted systemic issues with crypto regulation.
  • Investor Appeal: The ruling may attract more institutional investors to XRP, given reduced legal uncertainty.

Key Takeaways: The SEC's decision to drop its appeal against Ripple has significant implications for the cryptocurrency market, regulatory clarity, and investor sentiment. XRP's surge underscores the impact of legal developments on digital asset valuations.