In December 2020, XRP faced a significant threat from a SEC lawsuit, leading to a crash and legal turmoil. However, by August 2025, both parties dismissed their appeals, granting XRP definitive legal clarity and marking it as a non-security when sold publicly. This legal victory transformed XRP from a regulatory challenge to a well-validated digital asset. The SEC litigation united the XRP community, which actively campaigned and supported Ripple throughout the lawsuit. Significant legal victories included distinctions between institutional and programmatic sales, framing XRP as an inherently non-security for retail sales. Combined with a favorable ruling, XRP’s market capitalization surged, fundamentally altering its place in the cryptocurrency landscape. The clarity now permits Ripple to shift focus toward global expansions and technological developments, potentially solidifying XRP’s moat against future regulatory challenges. This unique regulatory position enhances XRP's appeal to institutional investors, having accumulated a bond of support among its holder community.

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