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Crypto: XRP Soars After Victory Against The SEC

Crypto: XRP Soars After Victory Against The SEC

CointribuneCointribune2025/03/20 16:22
By:Cointribune

The tug of war between Ripple and the SEC lasted four years, plunging the crypto market into growing uncertainty. Thus, investors remained skeptical, while XRP faced constant pressure on its legitimacy. Against all odds, the SEC dropped its lawsuits, a decision seen as a historic victory for Ripple and a decisive turning point for its native token.

Crypto: XRP Soars After Victory Against The SEC image 0 Crypto: XRP Soars After Victory Against The SEC image 1

Ripple lifts the sword of Damocles: the end of a long legal battle

The SEC accused Ripple of having sold XRP as an unregistered security, an allegation that weighed on the crypto ecosystem since December 2020.

However, a major turning point occurred in July 2023, when a federal judge ruled that XRP could not be considered a security in the majority of transactions.

This decision put the SEC in a difficult position, which ultimately chose to put a definitive end to the trial in March 2025.

Brad Garlinghouse, CEO of Ripple, commented on the subject: “the case is over”, before adding that this victory rehabilitates the image of XRP and the crypto industry as a whole.

The consequences were immediate:

  • XRP price jumped by 13%, reaching $2.53 according to CoinMarketCap.
  • reduction of regulatory uncertainty, fostering a climate of trust in the market.
  • potential return of institutional investors, who have long been hesitant due to legal risks.
  • XRP’s market capitalization estimated at $146 billion, still far behind Ethereum and its $246 billion.

Such a surge could redefine XRP’s place in the crypto landscape, but the path to market dominance remains fraught with challenges.

XRP vs Ethereum: an ambition still distant?

While some observers believe that XRP could compete with Ethereum, the reality of the market calls for caution.

Thus, Sid Powell, CEO of Maple Finance, emphasizes that this legal victory stabilizes the regulatory future of the token, but the real battle is fought elsewhere. Indeed, Ethereum massively dominates decentralized finance (DeFi) with a Total Value Locked (TVL) of $114 billion, while XRP still struggles to establish itself in this realm.

The power of Ethereum lies in its solid ecosystem, which hosts smart contracts, decentralized applications, and advanced staking solutions, while Ripple remains primarily focused on cross-border payments.

Nevertheless, XRP has strategic advantages. Its On-Demand Liquidity (ODL) service recorded $30 billion in transactions in 2023 and continues to attract major partnerships, notably with Standard Chartered Bank and MoneyGram.

“This decision could restore confidence among investors and institutions, boosting Ripple’s adoption,” says Ryan Lee, analyst at Bitget Research. However, to truly worry Ethereum, XRP will need to broaden its scope beyond payments and delve deeper into DeFi and smart contracts.

The end of the conflict between Ripple and the SEC marks a regulatory victory for the entire crypto ecosystem, reinforcing the legitimacy of these assets in the eyes of authorities. However, the possibility that XRP dethrones Ethereum remains highly hypothetical, unless there is massive adoption by financial institutions and a strategic shift towards DeFi. Nevertheless, this decision offers Ripple a unique opportunity: to redefine its positioning and leverage this new climate of trust to accelerate its development.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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