XRP surged 10% following an announcement by Ripple CEO Brad Garlinghouse that the U.S. Securities and Exchange Commission (SEC) has decided to end its appeal in their long-standing legal battle. This marks a significant win for Ripple and the broader cryptocurrency industry.

Ripple’s Victory: A Turning Point

Brad Garlinghouse broke the news in a dramatic video posted on X, declaring, “It’s over.” The announcement sent XRP to a high of $2.55, while Bitcoin briefly climbed above $84,000 before dipping slightly.

The legal fight began in December 2020, when the SEC accused Ripple of selling XRP as an unregistered security. Despite a partial victory in 2023, the SEC appealed in 2024. Its decision to abandon the case signals a shift in regulatory tone under the new administration.

SEC Softens Stance Under Trump Era

Since Donald Trump took office, the SEC has scaled back its aggressive enforcement on crypto companies. Acting SEC Chair Mark Uyeda and pro-crypto commissioner Hester Peirce have restructured the agency’s approach, including the creation of a crypto task force to draft new industry rules.

Under Biden-era SEC Chair Gary Gensler, the agency targeted crypto giants like Coinbase, Kraken, and Gemini, labelling many cryptocurrencies as unregistered securities. However, Trump’s pro-crypto administration has led to the withdrawal of lawsuits against major players, including Coinbase, Binance, and Yuga Labs.

Pro-Crypto Lobbying Pays Off

The crypto industry played a pivotal role in this regulatory pivot. In 2024, companies spent over $130 million on pro-crypto candidates, with influential figures like the Winklevoss twins and Kraken’s Jesse Powell backing Trump’s campaign. Their efforts helped usher in a more lenient regulatory environment.

Hester Peirce, a prominent advocate for crypto innovation, emphasised the importance of collaboration, stating:
“Our law is not supposed to be a game of gotcha. Let’s step back, revisit things, and get people’s input.”

What’s Next for XRP and Crypto?

Ripple’s victory could reignite confidence in the cryptocurrency market. However, challenges remain as the industry awaits the SEC’s new rulebook under its crypto task force.

For now, XRP’s price surge reflects optimism among investors, but the long-term impact will depend on how the new regulatory framework unfolds. The end of this landmark case marks a milestone, but the road ahead remains uncertain.