Why Is XRP Up Today? 7% Surge After SEC Drops Ripple Lawsuit

Ripple’s cryptocurrency XRP is experiencing a significant surge, jumping 7% today after the U.S. Securities and Exchange Commission (SEC) announced that it would drop its ongoing lawsuit against Ripple. The news comes as a major turning point in the legal battle that has plagued the company for years.

The End of a Legal Battle

The SEC has been pursuing a multi-year case against Ripple, accusing the company of selling unregistered securities in the form of XRP. This legal dispute began back in December 2020, when the SEC filed a lawsuit alleging that Ripple’s sale of XRP tokens violated securities laws, resulting in a $1.3 billion offering.

Ripple CEO Brad Garlinghouse took to X on March 19 to announce that the SEC would be dropping its appeal in the case. "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," Garlinghouse tweeted. The announcement marked a historic moment for Ripple, signaling the end of a long-running legal drama that had caused uncertainty for XRP and the broader cryptocurrency market.

In a video posted alongside the tweet, Garlinghouse expressed his excitement and relief: “I’m finally able to announce that the case has ended; it’s over.” This milestone marks the end of a tumultuous chapter for Ripple, one that has had significant legal and financial consequences for the company and its stakeholders.

Following Garlinghouse's announcement, XRP experienced a dramatic surge in price. Within an hour, XRP’s value surged by about 9%, and it is currently up by 7%, trading at $2.45. This jump in price reflects the broader optimism in the market following the announcement, as the uncertainty surrounding Ripple's legal future has weighed heavily on XRP’s price for years.

An Impact For A Broader Crypto Market

Garlinghouse’s announcement not only marks a victory for Ripple but also has broader implications for the cryptocurrency industry. For one, the SEC’s decision to drop its appeal is seen by many as a sign that XRP tokens are being treated as digital commodities, rather than securities. This development could have significant implications for other cryptocurrencies, as it may set a precedent for how they are classified in the future.

Crypto lawyer John Deaton commented that the SEC’s move serves as the “final exclamation point” that tokens like XRP should not be considered securities. He further suggested that the remaining $125 million judgment against Ripple could now be up for negotiation, especially in light of the SEC’s decision to drop its appeal.

There is, however, still an ongoing injunction that prevents Ripple from selling XRP to institutional investors, a complication that Ripple will need to address moving forward. But with the SEC backing off, Ripple is now free to focus on expanding its operations and strengthening its position in the crypto space.

A New Chapter for Ripple

This announcement also signals a shift in the regulatory landscape under the leadership of President Donald Trump. Ripple’s legal victory is part of a broader trend of the SEC easing up on the cryptocurrency industry, which has previously faced intense scrutiny under the Biden administration.

Garlinghouse expressed his gratitude for the support Ripple has received throughout the legal battle and emphasized the importance of moving forward. “We’re now closing a chapter in crypto history,” he said.

More to that, Garlinghouse added that Ripple is now focusing on expansion and emphasized the company’s commitment to the broader crypto space. He mentioned that Ripple has invested over $2 billion in various crypto projects, even those unrelated to XRP. “I fundamentally believe Ripple will do well,” he stated. This strategy reflects Ripple’s belief that the success of the entire crypto industry will ultimately benefit the company.

With regulatory headwinds easing, Ripple is in a prime position to continue its growth and strengthen its role within the broader digital assets sector.

Garlinghouse’s message is clear: this legal victory is just the beginning. As the company moves forward, it plans to make further investments and expand its reach, contributing to the evolution of the crypto space as a whole.