The SEC lawsuit against Ripple Labs in December 2020 posed a serious threat to XRP, causing a significant crash and leading to mass delistings. However, after years of litigation, a landmark court ruling on August 7, 2025, concluded that XRP is not classified as a security when sold publicly, granting it legal clarity. This pivotal outcome took XRP from regulatory uncertainty to a solid position, a massive advantage over many competitors. The lawsuit inadvertently strengthened the community around XRP, as supporters united to defend the asset throughout the legal battle. Key victories in court underscored contradictions in the SEC's stance on crypto regulation, particularly regarding the classification of Ether. With the SEC case resolved and a manageable $125 million fine, XRP's market value surged, solidifying its position ahead of a growing institutional interest. The ruling allows Ripple to focus on global expansion and technological advancements like their RLUSD stablecoin, demonstrating the long-term impact of gaining regulatory clarity.

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