Ripple Triumphs as the SEC Drops Its Case
the staff of the Ridgewood blog
Ridgewood NJ, after years of legal battles, the Securities and Exchange Commission (SEC) has officially ended its fight against Ripple, marking the conclusion of its broader crackdown on the crypto industry.
On Wednesday, Ripple announced that the SEC had dropped its four-year lawsuit against the company, which accused it of raising $1.3 billion through the sale of XRP without registering it as a security. The lawsuit, originally filed on former SEC Chair Jay Clayton’s last day in office, became a defining case in the battle between regulators and the crypto industry.
Now, with the SEC backing down, Ripple is celebrating a major legal victory.
“Ripple stands alone as the company that fought back — and won on essential legal questions — throwing a major wrench into the SEC’s plans to destroy crypto in the U.S. through enforcement,” said Stuart Alderoty, Ripple’s Chief Legal Officer, in a statement to CNBC.
Ripple’s win caps a series of SEC withdrawals from cases against major crypto players, including Coinbase, Kraken, Robinhood, Binance, and OpenSea, all of which have seen lawsuits dropped, investigations put on hold, or settlements reached.
The crypto market reacted quickly to the news, with XRP surging 11% following the announcement.
How Ripple Fought Back—And Won
Ripple, which created XRP in 2012, spent $150 million fighting the government in a legal battle that spanned multiple years. The turning point came in July 2023, when a federal judge ruled that XRP is “not necessarily a security,” undercutting the foundation of the SEC’s case.
This ruling not only secured Ripple’s victory, but also shifted the regulatory landscape for the entire crypto industry.
The Ripple Effect: How Crypto is Gaining Momentum
Ripple’s legal victory did more than clear its name—it fueled a wider movement that led to a major shift in U.S. crypto policy.
The crypto industry played a key role in the return of Donald Trump to the White House. Once a crypto skeptic, Trump has since embraced the industry, stating in a keynote speech at the Bitcoin Conference:
“I am laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world.”
Since taking office, Trump has signaled strong support for crypto, with key industry figures becoming major contributors to his campaign.
The SEC’s New Approach: Regulation Through Engagement
The SEC is now pivoting away from aggressive enforcement and towards collaboration with the crypto industry.
Last Friday, the SEC hosted its first major crypto roundtable, led by Hester Peirce, who is spearheading the agency’s newly formed Crypto Task Force.
Peirce has been a longtime advocate for clear, fair regulations for digital assets. In a major policy reversal, the SEC also rescinded Staff Accounting Bulletin 121 (SAB 121)—a controversial rule that required banks to treat crypto assets as liabilities on their balance sheets.
Peirce celebrated the rollback with a blunt message on X (formerly Twitter):
“Bye, bye SAB 121! It’s not been fun.”
With Wall Street giants like Goldman Sachs, Morgan Stanley, and Bank of America signaling renewed interest in crypto, the thaw in Washington is already impacting institutional engagement.
The White House’s Crypto Pivot
Crypto’s rising influence in Washington became clear when David Sacks, Trump’s AI and Crypto Czar, stood beside the president as he signed an executive order on digital assets.
Sacks, who previously attended the Crypto Ball at Trump’s inauguration, declared:
“The war on crypto is over.”
The SEC’s retreat is evident across the industry:
✅ Coinbase’s lawsuit was dismissed in February.
✅ Kraken saw its legal troubles resolved.
✅ The SEC pulled back from its Wells Notice against Robinhood’s crypto division.
✅ The investigation into Binance is on hold.
Ripple’s legal team long argued that the SEC’s strategy was not about upholding the law, but about exerting control over the industry.
The regulator even took personal legal action against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, but these charges have now been dropped.
“While this chapter is closed, the fight for clear, fair, and transparent crypto regulation continues,” said Alderoty. “Ripple will continue to lead that fight.”
Final Thoughts: What’s Next for Crypto?
With the SEC backing down, Wall Street warming up, and the White House embracing digital assets, the future of crypto in the U.S. looks brighter than ever.
While challenges remain, Ripple’s victory sets a powerful precedent, proving that crypto companies can fight back—and win.
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