The XRP Army's influence was credited in Ripple's SEC case, impacting XRP's classification and causing price volatility.

Executive Summary

Ripple's legal battle with the SEC concluded with a mixed ruling, influenced by the XRP community, leading to significant price volatility for XRP. The case highlights the potential impact of community involvement in regulatory outcomes.

The Event in Detail

The SEC's lawsuit against Ripple in 2020, alleging unregistered securities sales of XRP, officially ended in August after a mixed ruling in July 2023. Judge Analisa Torres distinguished between institutional sales and programmatic sales, classifying XRP sales to hedge funds and institutional buyers as unregistered securities offerings, while XRP sold on exchanges was not considered a security. The conclusion of the case saw both parties dropping their appeals.

Market Implications

XRP experienced notable price fluctuations throughout the legal proceedings. Following Judge Torres' ruling in July 2023, the token's price surged 72%, rising from $0.47 to $0.81. It later reached a peak of $3.65 before retreating to $2.85. These price movements have been linked to increased regulatory clarity and speculation surrounding potential spot XRP exchange-traded funds (ETFs).

Expert Commentary

Crypto advocate and lawyer John Deaton stated that the “XRP Army” made a significant difference in the case, saying, >“no credible person can argue” that the “XRP Army” didn't make a difference. “If they do they're either ignorant to the facts and truth or intentionally lying. We have conclusive evidence that we made a difference.”

Deborah McCrimmon, Ripple's vice president and deputy general counsel, highlighted the XRP Army's role in providing crucial information, stating that the community's efforts gave the court visibility that the case “impacts a lot of people,” not just Ripple. Specifically, the XRP Army provided support for Ripple's fair notice defense by finding speeches and talks related to blockchain, crypto, XRP, and Ripple.

Broader Context

The acknowledgment of the XRP community's influence could empower other crypto communities in future regulatory battles. The mixed ruling, however, leaves continued uncertainty regarding the classification of crypto assets as securities, impacting how digital assets might be regulated. The SEC has designated cryptocurrencies as a key examination priority for 2025, focusing on registrants offering crypto-related services, such as spot Bitcoin and Ether exchange-traded products.

Ripple's On-Demand Liquidity (ODL) service, which utilizes XRP to facilitate cross-border payments, processed $1.3 trillion in transactions in Q2 2025, highlighting its growing institutional adoption. Partnerships with companies like Santander, Standard Chartered, and SBI Holdings further underscore this trend.

The SEC's initial enforcement-heavy approach under Chair Gary Gensler aimed to regulate cryptocurrencies and protect investors. However, the current environment signals a potential shift towards innovation and regulatory clarity, with a focus on developing clearer policies and reducing regulatory burdens on crypto firms, as indicated by the dismissal of a civil enforcement action against Coinbase and the SEC's consideration of a framework to categorize crypto assets.

Key entities involved in the case include the SEC, Ripple Labs, Judge Analisa Torres, and attorney John Deaton. The outcome has implications for the broader cryptocurrency market, potentially shaping regulatory approaches and influencing investor sentiment towards digital assets.