- The SEC has dropped its appeal against Ripple in a significant victory for the company, triggering a 13% rally in XRP’s price before it retraced to US$2.4.
- Despite Judge Torres ruling that XRP is not a security, Ripple still faces a US$125 million fine and an injunction preventing institutional XRP sales without securities registration, which the company may challenge.
- Industry experts caution that this development doesn’t necessarily indicate a broader shift in SEC crypto policy, with clarity expected only once new SEC Chair Paul Atkins takes office.
- Yellow Network Chairman Alexis Sirkia suggests markets had already “priced in” this outcome, noting that overall regulatory uncertainty and other factors like “Tariff uncertainty” continue to influence crypto market conditions.
As reported, the US Securities and Exchange Commission (SEC) has dropped its appeal against Ripple. The win for Ripple was received with great relief among the XRP community and has sent the price of XRP on a rally.
Yesterday the coin gained as much as 13%, but has since started to retrace again, dropping 5.5% from a high of US$2.58 (AU$4.09) to trade at US$2.44 (AU$3.87).
SEC vs Ripple Still Not Over Yet?
But while the SEC appeal was dropped, it doesn’t mean the whole legal case is off the table. Ripple Chief Legal Officer Stuart Alderoty said on Crypto Twitter that the firm is still considering its own response.
Also read: Fed Rate Hold Sparks Crypto Rally Despite Analyst Warnings of Premature Optimism
With the SEC dropping its appeal, Ripple is now in the driver’s seat and we’ll evaluate how best to pursue our cross appeal. Regardless, today is a day to celebrate this victory.
Stuart Alderoty, Ripple Chief Legal OfficerCEO Brad Garlinghouse said during a Bloomberg interview on March 19 that they might still request a higher court to review the decision by Judge Analisa Torres.
While Torres had ruled that XRP is not a security, there is still a US$125 million (AU$198 million) fine and an injunction that stops Ripple from selling XRP to institutional investors unless they first register the sales as securities.
That is what Ripple is now reportedly considering appealing.
SEC’s Attitude Toward Crypto Not All That Clear
But even beyond just Ripple, observers are not seeing this dropped appeal creating a precedent.
Despite the SEC clearly changing its attitude towards crypto, Lawyer Aaron Brogan told Cointelegraph that we will only see what the SEC’s stance is once Paul Atkins takes over the position of Chair.
Read also: Chainlink Co-founder Urges US to Lead Tokenised Real-World Assets Industry to Remain Competitive in Global Finance
Alexis Sirkia, Chairman of Yellow Network – a Web3 clearing network backed by Ripple co-founder Chris Larsen – agreed with that sentiment.
He told Crypto News Australia that “while this appeal dismissal is significant, it doesn’t resolve the SEC’s overall stance on crypto, leaving lingering uncertainty”.
And though a clear win for crypto, Sirkia believes the market had already ‘priced in’ the outcome, while overall uncertainty remains.
Prevailing market conditions such as Tariff uncertainty also play a role. Investors are still evaluating the broader landscape.
Alexis Sirkia, Chairman of Yellow NetworkHe added that “clear, comprehensive regulations” are the best way forward for the industry; that, and “Trump putting a pause on being Trump would also help”.
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