Ripple’s SEC Victory Shakes Up Crypto Policy Landscape

Ripple’s legal win against the U.S. Securities and Exchange Commission (SEC) is more than just a courtroom success — it’s a turning point for the crypto industry. After years of aggressive enforcement, the SEC is signaling a new era. With Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty leading the charge, the company has now emerged as a symbol of crypto resistance. Here’s how this battle unfolded and what it means for regulation, crypto policy, and the future of digital assets.

SEC Ends Ripple Lawsuit After Four Years

Ripple announced this week that the SEC has officially dropped its lawsuit, ending a long and expensive fight. The case, launched in December 2020, accused Ripple of selling $1.3 billion in XRP tokens as unregistered securities. Ripple fought back, spent $150 million in legal fees, and ultimately won a key ruling in 2023 that XRP is not necessarily a security. That undercut the foundation of the SEC’s case. Alderoty called the win a “major wrench” in the SEC’s enforcement strategy. Garlinghouse and Larsen, Ripple’s top executives, also had charges against them dropped. XRP surged 11% after the news. This decision isn’t just a legal milestone — it marks the end of an aggressive chapter in U.S. crypto enforcement.

SEC Shifts Tone at Crypto Roundtable

Following the Ripple defeat, the SEC held its first crypto roundtable. This time, the tone was different. Hester Peirce, now leading the agency’s Crypto Task Force, opened the event by promising a new direction. She said the SEC is “earnestly” working toward a fair, workable crypto policy. The roundtable included a dozen attorneys from the industry, offering input on what clarity should look like. Peirce acknowledged that past enforcement-first tactics caused confusion. Now, the SEC is aiming to define what makes a digital asset a security, using plain language and established principles. It’s a sharp contrast from the past few years.

Ripple Urges SEC to Focus on Regulation, Not Punishment

Ripple didn’t just win the case — it’s now using its platform to push for better rules. In a February letter responding to an SEC policy request, Ripple criticized the commission’s enforcement-first approach. The company argued that past actions were based on unclear standards and often misused legal tools like the Howey Test. Ripple says the SEC’s approach slowed innovation and scared off blockchain startups. Alderoty called for “straightforward market guidance” that helps, not hinders, responsible crypto development. The firm also pushed for safe harbor rules and regulatory sandboxes, tools that have worked in other countries. In short, Ripple wants laws that are clear, consistent, and actually grounded in existing statutes.

The SEC’s Legal Confusion May Be Coming to an End

The Ripple lawsuit highlighted just how murky crypto regulation in the U.S. has been. For years, the SEC relied on case-by-case enforcement to try and define what was legal. But Ripple’s legal team argued that this was a power play, not policymaking. Even regulators from other countries were pulled into the fight as the SEC went after Ripple’s business partners and leaders. Now, under Peirce’s leadership, the SEC is backing off. Coinbase, Kraken, Robinhood, and Binance have all seen lawsuits dropped or paused. The agency also reversed a controversial rule, SAB 121, that had blocked crypto adoption by banks. These moves show that Washington may finally be warming up to crypto again.

What’s Next for Ripple and the Crypto Industry

Ripple may have won this round, but the bigger fight for clear crypto regulation is still on. Alderoty said Ripple will keep pushing for “transparent, fair” policy. Trump’s return to office, backed in part by crypto donations, may accelerate change. His administration has already shown signs of support, with pro-crypto voices gaining influence. For now, Ripple’s victory is a win for the entire crypto industry. It proves that companies can push back — and win. With the SEC changing course, and clearer policies on the horizon, the U.S. may finally be on its way to becoming a true crypto leader. But as always in this space, the next chapter is just beginning.