Background on the SEC Lawsuit Against Ripple
In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, alleging that the company raised $1.4 billion through the sale of XRP tokens as unregistered securities. This legal battle became a focal point in discussions about cryptocurrency regulations in the United States.
A significant development occurred in July 2023 when a federal judge ruled that XRP tokens sold on public exchanges were not securities. However, the court determined that institutional sales of XRP were subject to securities laws. Ripple secured a partial victory, though it faced a proposed $125 million fine, which was deferred due to an appeal.
Shift in Regulatory Approach Under the Trump Administration
After Donald Trump returned to the presidency, his administration signaled a more crypto-friendly stance. In March 2025, Ripple CEO Brad Garlinghouse announced that the SEC had dropped its appeal, officially concluding the years-long legal battle. This decision aligned with the broader trend of the SEC under the Trump administration easing regulations and dropping cases against several crypto firms, including Coinbase and Robinhood.
Further emphasizing this shift, President Trump signed an executive order establishing a U.S. Crypto Strategic Reserve, which includes major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano. This move was part of his administration's efforts to position the United States as a leader in the cryptocurrency space.
Ripple's Engagement with the Trump Administration
Ripple has actively engaged with the Trump administration. The company donated $5 million to Trump's inaugural committee, and CEO Brad Garlinghouse met with President Trump at the White House for a crypto summit. These interactions have fueled discussions about the potential influence of political connections on regularly discussion #AltcoinSeasonLoading