The U.S. Securities and Exchange Commission (SEC) has officially halted its legal proceedings against Ripple, marking a major turning point in a legal battle that began in December 2020. While the move sets the stage for a potential settlement, XRP’s journey to recovery is far from over.
In the last 14 days, XRP has seen a modest price gain of 6.3%. But according to a recent post by All Things XRP, the damage caused by the lawsuit goes deeper than price performance.
The XRP Lawsuit That Changed Everything
The SEC’s lawsuit against Ripple nearly five years ago led to XRP being delisted from major U.S. exchanges, causing a 66.5% drop in December 2020—its largest monthly loss ever. This move not only impacted liquidity but also disrupted its momentum and trust among institutional players.
From 2021 to 2023, XRP’s price largely stagnated between $0.30 and $0.50. Although it saw some gains—276.2% in 2021 and 82.5% in 2023—those figures paled in comparison to competitors like Solana. SOL skyrocketed by 11,180% in 2021, dropped in 2022, and then rebounded 918.4% in 2023.
XRP’s lack of participation in major bull runs has been widely attributed to the uncertainty created by its ongoing legal battle.
More Than Just Price Damage
Beyond market performance, the lawsuit severely tarnished XRP’s reputation. Analysts argue that the multi-year litigation cost Ripple valuable time that could have been spent on innovation and expanding its presence in the global payments sector.
According to All Things XRP, institutional confidence eroded during this period, and Solana and other rivals capitalized on XRP’s absence from key markets.
What Lies Ahead for XRP?
Even after the SEC dropped its charges, XRP hasn’t shown strong bullish momentum. Over the last seven days, XRP rose only 0.6%, and in the past 24 hours, it dropped by 1.1%.
However, there are signs of strategic rebuilding. Ripple is reportedly working on new ETF applications, the launch of its stablecoin RLUSD, and forging fresh partnerships.
Despite past setbacks, analysts remain cautiously optimistic. If Ripple can rebuild trust and accelerate innovation, XRP may yet reclaim its role as a key player in cross-border payments.
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FAQs
Yes, the SEC officially halted its lawsuit against Ripple, signaling a major step toward possible settlement and resolution.
XRP dropped 66.5% in December 2020 and missed major bull runs due to delistings and shaken investor confidence.
Ripple plans to launch a stablecoin, apply for ETFs, and rebuild institutional trust to regain a global payments role.
