Ripple CEO Brad Garlinghouse announced on March 20 that the U.S. Securities and Exchange Commission (SEC) officially withdrew its appeal against its lawsuit, ending a four-year legal battle.
After the news was announced, the price of XRP soared 10% in an instant, reaching a high of US$2.57, a new high since 2025, and has now fallen back to US$2.45. Garlinghouse emphasized that this was a "major victory for the crypto industry," and the market focus shifted to whether the XRP spot ETF could be approved.
XRP price surges 10%
Judge Torres' ruling secures victory, legality of retail trading confirmed
The case began in 2020 when the SEC accused Ripple of illegally raising $1.3 billion through XRP. In 2023, New York District Judge Analisa Torres ruled that "the sale of XRP to institutions violated securities laws," but "retail trading on exchanges did not constitute a violation of the law." The ruling required Ripple to pay a $125 million fine in exchange for a settlement, but the SEC continues to appeal to overturn the verdict. With the resignation of former SEC Chairman Gary Gensler, regulatory policy shifted and the appeal was eventually withdrawn.
The probability of XRP spot ETF passing the review surges, and institutions such as Grayscale rush to invest
Ripple has donated more than $75 million to political causes over the past four years, including $70 million to support the Congressional Fairshake Super PAC and $5 million to the Trump Inauguration Fund.
As the lawsuit comes to an end, Bloomberg ETF analysts estimate that the XRP spot ETF applications submitted by Grayscale, Bitwise, Franklin Templeton and other institutions have a 65%-75% chance of being approved before the end of the year. Ripple's Chief Legal Officer Stuart Alderoty said the ruling confirming that XRP is not a security will speed up the ETF review process. The SEC has not yet officially responded, and the industry expects that the voting of the committee members will become the focus of the next stage.
