The SEC lawsuit against Ripple Labs, initiated in December 2020, initially threatened the viability of XRP, causing a dramatic 62% drop in its value. However, a key development occurred on August 7, 2025, when both Ripple and the SEC dropped their appeals, resulting in a landmark ruling that officially classified XRP as a non-security when sold on public exchanges. This significant legal clarity has not only validated XRP but has fostered unity within its community, dubbed the 'XRP army,' which rallied behind the cause throughout the litigation. Key victories during the legal process, such as distinctions between institutional and programmatic sales of XRP, helped to further bolster its status as a legitimate cryptocurrency. The final ruling established binding legal precedents and reinforced XRP's market position, propelling its value to around $3. This outcome provides Ripple with a foundation for global expansion and the introduction of innovations like the RLUSD stablecoin, while also aligning it favorably with institutional investors now seeking clarification in the regulatory landscape.

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