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Retail investors on Stocktwits remain cautious, with the SEC yet to verify CEO Brad Garlinghouse’s claim that the lawsuit is over.
Ripple’s native token (XRP) surged over 10% in U.S. market hours on Wednesday after CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuit against the company.
In a video posted on X (formerly Twitter), Garlinghouse declared, “I’m finally able to announce that this case has ended. It’s over.”
He described the development as a “victory” for Ripple and a “long-overdue surrender” by the SEC, which has scrutinized the company for more than four years.
However, the SEC has yet to confirm that it will drop its appeal.
A Ripple spokesperson told Decrypt that the SEC’s decision is “subject to Commission vote and approval” and may take “several weeks” for the case to be officially withdrawn. “That timeline is completely in the SEC's control,” they said.
Despite the lack of formal confirmation, XRP’s price has surged by nearly 14% in the last 24 hours to cross $2.50, outperforming other major cryptocurrencies, according to CoinGecko data.
The SEC’s move to end its lawsuit against Ripple aligns with its recent retreat from aggressive crypto enforcement.
Since President Donald Trump began his second term in January, the regulator has dropped civil lawsuits against major crypto exchanges Coinbase (COIN) and Kraken.
On Sunday, a proposal for XRP to be declared a strategic financial asset for the U.S. was published on the SEC website. According to the proposal, the country could see massive financial benefits if it makes XRP a payment asset.
Despite the rally, retail sentiment on Stocktwits around XRP’s token remained in the ‘neutral’ zone, albeit with a marginal uptick in mood.
One user remarked that while the price action was positive, meaningful regulatory clarity was still needed for long-term gains.
Others expressed skepticism over Garlinghouse’s announcement, questioning whether the SEC’s decision would follow through.
XRP has gained over 300% in the past year, making it one of the best-performing digital assets among major cryptocurrencies.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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