The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Ripple, marking the end of a four-year legal battle that had major implications for the crypto industry.
Ripple CEO Brad Garlinghouse on March 19 celebrated the victory, calling it a "long-overdue surrender" and a defining moment for the future of crypto regulation in the U.S.
"As many of you know, just over four years ago, the United States SEC filed its lawsuit against Ripple. I'm finally able to announce that this case has ended. It's over," Garlinghouse said in a video posted on X. "Sitting here today and reflecting on four years ago, it seems very clear to me that this case was doomed from the start in so many ways." He went on to say that the lawsuit was “the first major shot fired in the war on crypto” and that Ripple always believed it was on "the right side of history."
Garlinghouse did not hold back in his criticism of the SEC’s approach under Chair Gary Gensler. “The SEC wasn't seeking justice. They were seeking to win a case at any cost,” he said. “This was lawfare, a war of legal terror.” He further accused the regulator of acting as a “market manipulator” rather than a protector of investors, pointing out that the lawsuit had erased $15 billion in value from XRP holders.
The Ripple CEO credited Judge Analisa Torres for recognizing the broader implications of the case. "The judge realizes this is not just about Ripple. This will have broader implications," he said, noting that the court ruled that XRP is not a security. “We won then on every critical legal point proving that the digital asset XRP is not a security. That is now the law.”
Garlinghouse also called out the U.S. government’s past hostility toward crypto, saying regulatory uncertainty has stifled innovation. “Forces inside our government aligned with the SEC and embarked on a campaign of debanking anyone associated with the crypto industry,” he said. But he struck an optimistic tone, pointing to a shift in leadership. “Thankfully, we have new leadership in the executive and legislative branches that is actively seeking a rational and constructive way forward on crypto. Let’s make the most of this.”
He expressed gratitude to Ripple’s supporters, saying the company could not have won the fight alone. “Ripple is the first company with the resources, determination, and grit to fight back against the agency’s overreach, and today, this journey finally concludes,” he said. “This was a fight Ripple never wanted, but one we knew we had to win. And today, emphatically, we have.”
Ripple’s win caps a series of SEC retreats
The SEC’s decision to drop the Ripple case follows a pattern of legal setbacks for the regulator. In recent months, it has also dismissed charges against Coinbase executives related to staking services and reached settlements with Gemini and Kraken.
In Coinbase’s case, the SEC had alleged the company’s staking services amounted to unregistered securities offerings but later agreed to a more limited legal battle over specific products. Similarly, Gemini settled over its Earn program, while Kraken paid $30 million to settle its case without admitting wrongdoing.
XRP is surging, climbing 11% to $2.50, at the time of writing, per Kraken's price feeds.