On March 18, Ripple won a five-year legal battle against the US Securities and Exchange Commission (SEC). The SEC has officially withdrawn its charge of selling unregistered securities using the XRP token. This event not only boosted the value of XRP, but could also have a long-term impact on the entire cryptocurrency market. The outcome of this decision could fundamentally change the regulatory approach to digital assets, especially given the Trump administration’s loyal policies.
Confrontation Ripple and the SEC: how it all started (and ended)
In December 2020, the SEC filed a lawsuit against Ripple Labs, a developer working with the XRP Ledger (XRPL) blockchain. It claimed that the company sold $1.3 billion worth of unregistered securities through the distribution of XRP tokens. According to According to the SEC, XRP tokens met the definition of securities under the Gauge test. Therefore, the tokens sold were subject to the same regulatory requirements as securities.
The Howey Test was developed by the US Supreme Court in 1946. It is used to determine whether a certain transaction is an investment contract and therefore a security. Here are its four main elements
- Investments: financial participation
- Joint venture: an investment is made in a joint venture or project
- Expectation of profit: an investor expects a return on his or her investment
- Profit from the efforts of others: the expected profit depends on the actions or efforts of other parties involved
If all four conditions are met, the transaction is considered an investment contract and is subject to regulation as a security.
So, back to the main story. At the time of the first lawsuit, Jay Clayton was still the head of the SEC. Only in 2021, he was replaced by a man known for his negative attitude towards cryptocurrencies Gary Gensler.
Ripple has denied any allegations, as XRP is a digital currency, not a security, and therefore does not fall under the jurisdiction of the SEC. The company also insisted on the lack of clear regulation of cryptocurrencies in general.
In July 2023, federal judge Analisa Torres ruled that XRP tokens sold on public exchanges are not securities. But sales to institutional investors are.
Almost two more years The SEC and XRP exchanged appeals. And then on March 18The SEC has withdrawn its lawsuit against Ripple, ending a years-long legal battle.
On the joys of gRipple CEO Brad Garlinghouse recorded a video message.
This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.
The future is bright. Let’s build. pic.twitter.com/7WsD0C92Cm
— Brad Garlinghouse (@bgarlinghouse) March 19, 2025
The fact that the Trump administration is very loyal to digital assets played an important role. The current president has promised to make the United States «the world’s cryptocurrency capital», as well as signed a decree on the creation of a strategic national cryptocurrency reserve and the American digital asset fund. The latter will be formed by a digital asset fund based on the principle of «America First». That is, the fund’s list of cryptocurrencies will include only projects from the United States. These include Ripple Labs with their XRP token.
The developer of XRP Ledger is also valuable because last year launched its own stablecoin RLUSD, with which it wants to legally enter the EU market after many popular cryptocurrencies may lose ground due to non-compliance with MiCA standards. For example, this is Tether and its largest stablecoin on the USDT market.
It is interesting that a week ago, Fox Business reporter Eleanor Terrett, citing her own sources reportedreported that the SEC and Ripple were negotiating the terms of the settlement. Ripple allegedly sought to mitigate the terms of the August 2024 decision, when the court imposed a $125 million fine and banned the SEC from selling to institutional investors.
It is not yet known on what terms the SEC and Ripple settled, as the regulator’s official document has not yet been published.
XRP forecast: what will happen to the price now?
Despite the positive decision in favor of Ripple, experts are divided in their assessments of the future of XRP.
Some see the price in the range of $5-$7 in 2025, based on the growing use of XRP in payment systems and regulatory changes.
The other — warns of a drop to $1.05 by the end of this year due to doubts about the decentralized nature of XRP due to its dependence on Ripple, competition with stablecoins, and the overall poor state of the crypto market.
XRP holders give a discreet clue:
Despite a slight increase in the XRP price, Ripple’s victory over the SEC could have a significant impact on the entire cryptocurrency industry. In addition to the growth of positive sentiment due to the signaling of change of regulatory approachThis will set a precedent for other cryptocurrency projects that have regulatory problems.
In addition, XRP is mainly used for international payments through Ripple, which has partnerships with major financial institutions around the world. It is also worth noting the company’s role in pilot projects CBDC, fast and cheap transactions in the XRP Ledger network, which makes it the most interesting option for real estate tokenization.
The SEC approval of the XRP exchange-traded fund, the application for which submitted to theompany Bitwise Asset Management.
And here are the first bells….
On March 19, the crypto exchange Bitnomial said about the launch of the first futures in the United States
Allows you to buy or sell XRP in the future at a fixed price. on XRP, which will be regulated by the Commodity Futures Trading Commission (CFTC). Trading is scheduled to begin on March 20. Bitnomial also announced a voluntary dismissal of a lawsuit against the SEC that it filed in October 2024, challenging the Commission’s assertion that it has jurisdiction over XRP futures contracts.
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