Ripple CEO: XRP Was No.2 Before SEC Lawsuit Halting Growth
Ripple CEO Brad Garlinghouse reminded traders that XRP once held the position of the second-largest cryptocurrency by market capitalization, trailing only Ethereum, before U.S. Securities and Exchange Commission (SEC) intervention. His comments coincided with the official end of Ripple’s nearly five-year legal battle when Ripple and the SEC withdrew appeals in the Second Circuit on August 7, 2025. Although the district court’s rulings remain—imposing a $125 million civil penalty on Ripple and injunctive limits on institutional sales—Judge Analisa Torres confirmed in July 2023 that XRP’s secondary market trading is not a securities transaction. The legal clarity sparked an immediate XRP price rebound of 4–13% across major exchanges. Analysts expect renewed listings, stronger institutional confidence, and potential inclusion in future crypto ETFs. With regulatory overhang removed, Ripple can now focus on expanding adoption, partnerships, and cross-border payment solutions, setting the stage for a possible market recovery.
Bullish
The end of Ripple’s long-running SEC case removes a major regulatory overhang and restores investor confidence in XRP. Historically, regulatory clarity—such as the favorable outcome in the Grayscale Bitcoin Trust lawsuit—has led to rapid price surges and renewed market interest. XRP’s 4–13% price jump immediately following the dismissal reflects typical trader reaction to reduced legal risk. In the short term, we can expect increased trading volume, relisting on previously delisted exchanges, and speculative buying ahead of potential ETF approvals. Over the long term, clear rules distinguishing secondary market trading from securities transactions may encourage institutional product development, deepen liquidity, and support broader crypto market maturation. Consequently, this ruling sets a bullish tone for XRP and may positively influence other digital assets facing similar regulatory uncertainty.