The Securities and Exchange Commission (SEC) has decided to withdraw its appeal against Ripple Labs and put an end to a four-year legal battle over whether XRP should be classified as security.
Ripple CEO Brad Garlinghouse is called a big win not only for the company but also for the crypto industry as a whole. That said, the broader impact on cryptocurrency surveillance remains uncertain.
The dispute allegedly began in 2020 when the SEC sued Ripple and two executives and implemented $1.3 billion of unregistered securities offerings. The lawsuit caused a sudden sale, with XRP sinking between about 25% and about 35 cents at the time.
In its original submission, the SEC stated:
“Because Ripple did not submit a registration statement, it did not provide investors with material information to include such statements when hundreds of issuers seek public investments each year. Instead, Ripple sells that the two insiders with the most control over Rarsen and Garlinghouse are selling XRP and selling XRP.”
Ripple was pushed back, denying XRP as security and questioning the timing of the lawsuit. The company positions XRP as a tool for rapid cross-border payments, but it argued that the SEC should be treated as security, which is similar to corporate stocks, rather than currency.
“This is the moment we’ve been waiting for,” Garlinghouse posted to X, describing the SEC decision as a “overwhelming victory” between Ripple and Crypto Space.
Just In: Ripple Ripple CEO Brad Garlinghouse declares victory after the SEC officially quits the lawsuit.
“This case is over. It’s over.” pic.twitter.com/m2wsacuzmv
– Watcher.Guru (@watcherguru) March 19, 2025
“Today, Ripple is moving forward more than ever. This groundbreaking case sets a precedent for the domestic crypto industry. Ripple is now in the driver’s seat as the SEC is losing its appeal. We appreciate the best way to pursue cross appeal. Today is the day we celebrate this victory.
Founded in 2012 by Arthur Britt, Chris Larsen, Paul Caffard and Ryan Fager, Ripple is a San Francisco-based blockchain startup that offers real-time gross payment systems, currency exchanges and remittance networks. The company’s RippleNet platform connects banks, payment providers and digital asset exchanges to streamline international transactions.
For now, XRP is under pressure as investors evaluate the fallout. The SEC’s decision to withdraw the appeal shows a turning point, but the regulatory uncertainty surrounding the code is far from being resolved.
