Ripple Labs, originally called OpenCOIN, was established to create a central and cheapest transaction system, and the digital assets fill with the dominant financing using XRP. Unlike Bitcoin, Ripple employs a unique consensus algorithm based on the validity of the bank’s control.
In 2020, SEC filed a lawsuit against Ripple, claiming that XRP was unregistered security. A court later ruled that XRP was not a guarantee of retail sales, but found violations of institutional sales.
With a new friendly management, Ripple hopes for organizational clarity and urged the agency to drop the case that started under former SEC president Jay Clayton.
SEC V. Ripple Complete Timeline
The legal battle between Ripple Labs, the US Securities and Stock Exchange Committee (SEC) began on December 22, 2020, when the Supreme Education Council accused the CEO of Ripple Brad Garlinghouse and co -founder Chris Larsen of making an unregistered securities offer by selling XRP.
The Supreme Education Council claimed that Ripple raised $ 1.3 billion through XRP sales, on the pretext that the company’s control and promotion of XRP has fulfilled the criteria for the Howwey test for safety. Ripple denied these allegations, stressing that XRP is a digital currency, not safety.
One of the main factors in the case was the unique Ripple structure. Unlike decentralized cryptocurrencies such as Bitcoin, Ripple runs a network of bank -controlled servers to verify the health of transactions, and the symbolic supply of 100 billion completely from XRP was.
benefits |
Xrp |
Bitcoin |
| fast | 3-5 seconds to settle | 500 seconds for stability |
| low cost | $ 0.0002/TX | $ 0.50/Texas |
| Canable | 1500 Tx per second | 3 TX per second |
SEC has argued that the continuous Ripple control in the XRP offer and the active promotion of its XRP value as a guarantee requires a suitable registration.
On July 13, 2023, Judge Angia Torres made a mixed ruling and the regulatory clarity. The court decided that the XRP itself is not safely, as it provided relief to retail investors.
However, the judge has eliminated that XRP’s institutional sales were formed securities, highlighting the importance of how to market and sell digital assets.
After this ruling, on August 7, 2024, the court imposed a civil penalty worth $ 125 million in ripples due to institutional sales violations. However, SEC requests have been rejected on profit removal and additional benefits.
In addition, Ripple was prevented from violating securities laws regarding future institutional sales.
This case was characterized by a turning point in the regulation of the cryptocurrency, and a precedent for how to classify digital assets under the US Securities Law.
New SEC Call
The legal battle escalated when Ripple and SEC submitted the appeal on October 3, 2024, and transferred the case to the Court of Appeal in the second circle.
In January 2025, SEC presented its opening summary, on the pretext that the provincial court had made a mistake in the ruling that Ripple XRP sales failed to meet the Howwey test expectations and money investment requirements.
The agency seeks to cancel the ruling that XRP secondary sales were not securities.
The chief legal employees of the Ripple of Stewart Aldouti rejected SEC’s arguments as frequent and increasingly relevant amid changing organizational conditions. The company is still optimistic that the case can be dropped under the leadership of the Supreme Council for Technology in favor of Cracks in the Acting Mark Oida.
In response, Ripple submitted an integrated appeal in October 2024, on April 16, 2025. The lawsuit, which was launched by former SEC president Jay Clayton, witnessed multiple relapses of the agency. While the Supreme Education Council continues to appeal, its commitment to follow up on the case is still uncertain.
At the heart of the appeal of the Supreme Education Council, its challenge to the District Court’s decision, which classified the XRP institutional sales in Ripple as securities transactions but has ruled that secondary market sales and XRP themselves were not securities.
New hope
Republican SEC Commissioner Mark Uida was appointed as Acting Agency. One of the strong critic of the “Organization through enforcement” for the former SEC, Uyeda previously described as a “disaster” for the encryption industry. In December, he expected a shift towards the enforcement of the largest alleviating and organizational clarity.
Reflect on the Ripple and the broader encryption industry to reset an organizational – which gives priority to innovation on litigation. The chief legal official of the Ripple Stuart Aldouti will expect that the new administration will decrease from the SEC’s continuous resumption against the company and may stop enforcement procedures against other major encryption companies.
Meanwhile, SEC launched a new encryption squad, led by Commissioner Hyster Peres, to develop a comprehensive regulatory framework for digital assets. This initiative was widely welcomed by industry participants, who have long sought clear and consistent rules.
Aldeoty emphasizes that non -fatty cases should be set aside in favor of constructive participation. It urges a quick solution to the ongoing conflicts to provide the industry with the clarity of sustainable growth.
Will SEC Case Ripple freeze?
The Securities and Stock Exchange Committee may be preparing to freeze the non -kinetic cryptocurrency cases in the court, as some of them may be dropped, according to the recent Reuters report, pointing to unknown sources.
The agency is expected to start reforming the encryption policies early next week, after the departure of the president of the Secg Gary Gensler.
Republican Commissioners, Mark Uida and Hyster Peres, have been appointed to lead efforts to create clearer instructions to determine whether the symbol is distinctive qualified as a security, a step that can bring the organizational clarity that affects the need for this industry.
In an interview with the last Fox, former CFTC Chairman Chris Giancarlo Propagate SEC may fall against Ripple. When the correspondent Charles Gaspino was asked about this possibility, Giancarlo stated, “I bet they will do.” This follows the SEC’s appeal notice in the ongoing case, along with the Ripple appeal.
The effects of the XRP price
Between 2012 and 2018, XRP was subjected to dramatic prices changes. At the beginning, less than $ 0.01 in 2012 witnessed the minimum activity until the Ripple Labs began to falsify partnerships with financial institutions between 2014 and 2016, although prices remained less than $ 0.01.
The 2017 cryptocurrency mutation was characterized by a transformation point, with XRP rising from $ 0.006 to more than $ 1.00 by December, driven by increasing interest in Ripple technology and speculative trade. In January 2018, XRP reached its highest level at $ 3.84 during the enthusiasm of the peak market.
However, the broader market collapsed that year witnessed a decrease in the value of XRP to $ 0.60 by February and settled about $ 0.30 -0.40 dollars by the end of the year. This period confirmed the growth of XRP and the weakness of market trends and speculation.
The legal complaint of the United States of America against Ripple in November 2020 caused a sharp decrease in the price of XRP from $ 0.70 to $ 0.20.
XRP witnessed a significant increase in prices in 2021, but its momentum diminished throughout 2022. By November 30, 2024, XRP was traded at $ 1.94 per code.
On November 16, the price of XRP reached one dollar for the first time since 2021. In addition, the maximum market increased by 26.76 % to 57.98 billion dollars, while trading volume reached $ 13.13 billion.
With the new SEC Commissioner, optimism grows in the encryption sector. Many expect his successor to adopt a more convenient attitude towards digital assets.
If historical mattresses are held, XRP may aim to re -test its peak for the year 2018 of $ 3.41, with a long -term projection targeting the level of 4.236 Vibonchi about $ 13.93. The basics also enhance the issue of continuous bull, as it is in line with technical expectations.
