TLDR
- The SEC officially withdrew its final claims in the XRP lawsuit against Ripple Labs.
- Ripple’s Chief Legal Officer criticized the SEC’s handling of the case and called for regulatory clarity.
- The XRP lawsuit ruling 2023 stated that secondary market XRP sales were not securities transactions.
- The SEC had dropped all charges against Ripple executives Brad Garlinghouse and Chris Larsen earlier.
- Ripple is now urging Congress to establish clear crypto laws to avoid regulation through enforcement.
The XRP lawsuit has taken a significant turn as the SEC formally withdrew its final claims against Ripple Labs. Ripple’s Chief Legal Officer responded firmly, criticizing the regulator’s actions and calling for legislative clarity. With the XRP lawsuit nearly closed, Ripple now focuses on long-term regulatory reform.
Ripple CLO Questions Motive Behind XRP Lawsuit
The SEC sued Ripple in December 2020 for allegedly offering unregistered XRP securities to the public. The XRP lawsuit saw key developments, including a 2023 ruling that secondary XRP sales were not securities. The commission later dropped charges against Ripple executives Brad Garlinghouse and Chris Larsen.
After the SEC backed out of further litigation, Ripple’s legal team questioned the motive behind the lawsuit’s initiation. Ripple CLO Stuart Alderoty noted that enforcement cannot substitute proper regulation. The XRP lawsuit’s outcome has fueled broader concerns about inconsistent oversight in the crypto industry.
In the newest Crypto In One Minute, Ripple's Chief Legal Officer @s_alderoty explains why the SEC dropped its appeal against Ripple in March 2025, and where the US is going with smart crypto regulation on the horizon: https://t.co/HJ4wTBWDmx
🔒 Protecting consumers
🟢… pic.twitter.com/KD9bi66sGI— Ripple (@Ripple) May 2, 2025
Ripple’s legal stance emphasized the need for structure rather than punishment through uncertain litigation. Alderoty maintained that U.S. crypto firms face risks due to unclear frameworks. The XRP lawsuit exposed gaps that persist in digital asset policy enforcement.
Ripple Pushes Lawmakers to Update Crypto Rules
The conclusion of the XRP lawsuit has sparked renewed appeals for targeted legislation in digital finance. Ripple urged Congress to define crypto rules that ensure consumer protection while supporting innovation. Alderoty emphasized that without legislation, enforcement creates confusion and market disruption.
Multiple industry participants have joined Ripple in demanding that lawmakers replace outdated rules with transparent legal standards. Bills have surfaced, but bipartisan consensus and regulatory alignment remain lacking. The XRP lawsuit highlighted how prolonged enforcement actions affect company operations and public trust.
Alderoty said arbitrary regulation hurts all stakeholders, including compliant companies and U.S. economic interests. Ripple now aims to participate in shaping legislation to prevent future legal ambiguity. The XRP lawsuit’s resolution may set a precedent for proactive policy engagement in crypto governance.
Ripple has positioned itself as a strong advocate for regulatory modernization following the XRP lawsuit’s resolution. The company now focuses on influencing clear legislative frameworks for digital assets. Ripple sees this shift as essential for stability and growth in the crypto sector.
