Ripple after victory over SEC: What's in store for XRP?

Ripple after being freed from the SEC: here's how it's going to continue with XRP

For more than four years, the legal drama between the U.S. stock market watchdog SEC and Ripple Labs dragged on. The accusation: the company allegedly engaged in illegal securities trading by selling XRP. While former SEC Chairman Gary Gensler continued his crusade against the crypto industry, Ripple was hanging over $2 billion in fines. But with Donald Trump's election win came the breakthrough: the price of XRP soared more than 400 percent. Now the new, Republican-led SEC is finally dropping its appeals process. Why Ripple CEO Brad Garlinghouse is far from satisfied with this - and why he is counterattacking right now. Plus: how strongly the XRP stock price could benefit in the coming months.

The legal battle surrounding XRP

Back in July 2023, Ripple won an important interim victory in a U.S. federal court. It ruled that the sale of XRP to private investors did not violate U.S. securities laws. But Judge Analisa Torres did consider XRP to be a security when sold to institutional investors. The SEC, led by Gary Gensler, has since focused on that issue. The claimed fine of about $2 billion was rejected, but Ripple Labs was fined $125 million, according to an August ruling.

Even during the tenure of Gensler - known for his crypto skepticism - the SEC appealed the relatively lenient ruling. That the regulator's new leadership is now dropping this appeal, Ripple CEO Brad Garlinghouse on X calls it "a tremendous victory."

Garlinghouse does not spare his criticism. In a fierce outburst, he states:

"The regulator, which is actually supposed to protect investors, began a process with no mention of fraud or victims, robbing innocent XRP holders of $15 billion. The SEC itself was the market manipulator."

But he does not want to put a stop to it just yet. On the contrary: he is preparing a counteroffensive.

This is Ripple CEO Garlinghouse's new strategy

In an interview with Bloomberg explains Garlinghouse's plans:

"The judge ruled that some XRP coins we sold to accredited investors in 2015 and 2016 qualify as securities. Therefore, there is now a $125 million fine in an escrow account. We wouldn't mind getting that money back."

It feels good, he says, to be able to go on the attack for once instead of always being on the defense. According to Garlinghouse, a clear legal victory has now been achieved:

"XRP is no impact. It's good for the whole industry. But certain parts of it need to be clarified."

FoxBusiness journalist Eleanor Terret writes on X:

An IPO for Ripple Labs is off the table for now. The legal aftermath will get an encore, but for Garlinghouse, the focus is now elsewhere.

Takeovers instead of IPOs

According to Garlinghouse, an IPO is not currently a priority:

"Instead, we are looking at potential acquisitions. Under Trump, the U.S. crypto industry has a promising future."

He is also optimistic about XRP Spot ETFs:

"There are currently 11 ETF applications before the SEC, including from Bitwise and Franklin Templeton. I expect them to be approved in the second half of this year."

If true, the inflow of capital could be significant. According to a report by JPMorgan, XRP Spot ETFs could attract $4 billion to $8 billion as early as the first year of trading. Polymarket now estimates the probability of approval in 2025 at 84%, up 11 percentage points from last week. In fact, investment firm Bitnomial already has the first CFTC-regulated XRP futures launched.

What does this mean for XRP investors?

Immediately following news of the appeal withdrawal, the XRP price rose from $2.31 to $2.56, an 11 percent gain. Few investors had counted on such a quick turnaround; even pro-XRP advocates assumed April or May. Meanwhile, the price fell back slightly to $2.48.

But the combination of the cancelled appeal case, the ETF outlook and the legal clarity around XRP could provide an upside. In the Bloomberg interview, Garlinghouse hints at a "crypto reserve" that would include XRP, Ethereum, ADA and Solana in addition to Bitcoin, an idea Trump himself previously suggested in a Truth Social post. However, he later clarified that the official strategic reserve would consist only of Bitcoin.

Moreover, the White House stated that the U.S. may not purchase new digital assets except through legal proceedings. Since the government does not currently own XRP, it is unclear why Garlinghouse thinks this will change.

Conclusion: What will the future bring?

Still, the combination of clear regulations and approved Spot ETFs could boost XRP. According to analysts of Coin Bureau, Ripple could soar to new heights by the end of 2025 thanks to end of process, ETF approvals and wider acceptance of the XRP Ledger.

At the same time, there is also criticism, especially about the centralization of XRP. Within the Bitcoin community, dissatisfaction is growing over Ripple's power within its own ecosystem. But for now, the wind for XRP investors finally seems to be at its back.