SEC Drops Ripple Lawsuit, Brad Garlinghouse Confirms Legal Dispute Ends

Ripple CEO Brad Garlinghouse confirmed on March 19, 2025, that the U.S. Securities and Exchange Commission (SEC) has officially dropped its long-running lawsuit against the company and its XRP sales.

Ripple Wins as SEC Drops XRP Lawsuit

The SEC’s decision to drop the case marks the end of a four-year legal battle that began in December 2020 when regulators accused Ripple of raising $1.3 billion through the sale of unregistered securities called XRP. In July 2023, a court ruled that XRP was not a security in retail transactions, but Ripple was still hit with a $125 million fine and a ban on selling XRP to institutions until 2024. The SEC appealed the decision in January 2025.

Garlinghouse's announcement follows months of speculation that the SEC might drop the case. This comes after the SEC dropped similar cases against Coinbase and Robinhood in February 2025. Former White House official Anthony Scaramucci previously hinted at the possibility of a dismissal in a podcast in early March, although the SEC has yet to officially comment on the matter. Fox Business journalist Eleanor Terrett also previously dismissed the rumor in late February.

Political Changes May Influence Decision

Legal experts say political changes under the Trump administration played a major role in the case’s resolution. Ripple reportedly donated $5 million to Trump’s inauguration fund, and Garlinghouse’s January 2025 meeting with the president is believed to have influenced the negotiations.

The dismissal also nullifies the pending appeals process, including Ripple’s April 16, 2025, deadline to respond.

After Garlinghouse’s announcement, XRP’s price rose 10% to $2.50. The SEC has not made any official announcement about the dismissal. Still, the case’s conclusion marks a significant milestone for cryptocurrency regulation, and opens up new expectations for the development of XRP and the broader cryptocurrency market.