In a major turn of events for the cryptocurrency market, Ripple’s native token XRP has surged following an announcement by Ripple CEO Brad Garlinghouse. He confirmed that the U.S. Securities and Exchange Commission (SEC) is dropping its long-standing lawsuit against Ripple. This development has sent waves across the crypto sector, with XRP’s price jumping sharply and investor confidence returning.
Ripple’s Legal Battle with the SEC
Ripple has been entangled in a legal dispute with the SEC since December 2020. The regulator accused Ripple of conducting an unregistered securities offering by selling XRP, effectively claiming the token was a security. The lawsuit became one of the most closely watched cases in the cryptocurrency industry, as its outcome had the potential to reshape how digital assets are regulated globally.
Ripple fought the case over the past few years, arguing that XRP should not be classified as a security. The case also raised questions about regulatory clarity in crypto, particularly in markets like the UK, where regulators have taken a different approach.
Brad Garlinghouse Confirms SEC Drops the Case
On 19 March 2025, Ripple CEO Brad Garlinghouse revealed via an official statement that the SEC has decided to drop the lawsuit against Ripple entirely. Garlinghouse described the move as a “monumental win” for Ripple, its partners, and the broader crypto community.
Speaking to various media outlets, Garlinghouse emphasised that Ripple remained confident in its stance throughout the legal battle. He noted that the dismissal sets an important precedent and opens the door for more regulatory clarity, particularly in the United States, where crypto rules have been less defined.
XRP Price Reaction and Market Impact
Following the announcement, XRP’s price experienced a sharp increase. XRP surged over 15% within hours, reaching levels not seen since late 2021. Trading volumes across major exchanges also spiked, reflecting renewed investor interest.
Crypto market analysts suggest the decision has broader implications beyond XRP. It signals a more lenient approach by regulators, potentially encouraging further institutional investment in digital assets. In the UK, where the Financial Conduct Authority (FCA) has focused on consumer protection rather than outright bans, this news may prompt a reassessment of cross-border crypto partnerships involving firms like Ripple.
Several crypto traders in London noted that XRP’s surge could trigger a broader rally in the altcoin market, with positive sentiment spilling over to other major tokens such as Ethereum and Solana.
The Ripple Effect on Crypto Regulation
The Ripple case has long been seen as a litmus test for how crypto assets are treated under existing financial laws. While the SEC’s decision applies specifically to Ripple, its significance extends globally.
In the UK, where regulators have taken a more balanced approach, the focus has been on fostering innovation while maintaining financial stability. The Treasury’s recent consultation on crypto regulation highlighted the need for clear rules, echoing concerns raised throughout the Ripple case.
Industry experts, including representatives from CryptoUK, have welcomed the SEC’s decision to drop the lawsuit. They believe it creates an opportunity for greater collaboration between regulators and crypto companies in the UK and internationally.
Professor Gavin Brown, a cryptocurrency expert at the University of Liverpool, commented that the outcome of Ripple’s case “could influence regulatory decisions worldwide, including here in Britain, where authorities are keen to attract fintech investment.”
Ripple’s Next Moves and Plans for the UK Market
With the legal cloud lifted, Ripple is expected to accelerate its expansion plans. Garlinghouse hinted that Ripple will focus more heavily on partnerships in Europe and the UK, where the fintech environment remains favourable.
Ripple already has a strong presence in the UK, having partnered with several British financial institutions to facilitate cross-border payments using blockchain technology. Removing regulatory uncertainties could encourage even more UK banks and payment providers to integrate Ripple’s services.
Ripple’s UK-based customers may also feel reassured by the outcome. Analysts predict that Ripple’s On-Demand Liquidity (ODL) product, which uses XRP to facilitate fast international transactions, could see increased adoption across the British financial sector.
What It Means for UK Crypto Investors
For UK crypto investors, Ripple’s victory offers a boost in confidence. Over the past few years, the threat of regulatory crackdowns has caused volatility and caution in the market. The SEC’s decision signals a potential shift towards more favourable cryptocurrency conditions.
However, financial advisers continue to urge caution. The crypto market remains highly volatile, and while XRP’s price has surged, investors must perform due diligence.
According to the FCA’s latest data, nearly 10% of UK adults own cryptocurrency. This figure has steadily risen, reflecting growing interest and highlighting the need for clear and consistent regulation to protect investors.
