The Real Damage Done by the SEC's Lawsuit Against Ripple Was Not Just the Price

A respected voice in the XRP community, known on X as “All Things XRP,” has reignited the conversation around the true damage caused by the SEC's lawsuit against Ripple.

According to the commentator, the hit to XRP wasn't limited to its price. Instead, it also cost the project years of growth, innovation, and investor momentum.

The damage began in December 2020 when the SEC filed its case against Ripple. XRP plummeted 73% in days, from $0.65 to just $0.17, as major U.S. exchanges delisted the token. In parallel, liquidity dried up, and U.S. investors were locked out of the market.

Years in the Shadows

While Bitcoin, Ethereum, and Solana rallied during the 2021 bull market, XRP mostly stayed stuck between $0.30 and $0.50. The commentator claims the lawsuit created a chilling effect as retail FOMO skipped over XRP, and institutions stayed away.

Nonetheless, XRP delivered notable gains in 2021 as its price rose to $1.96 by April. However, due to the regulatory weight, it lacked the momentum to break previous cycle peaks like its rivals.

Commentators stressed that the stagnation wasn't due to technical failures or lack of utility but mainly due to the legal uncertainty. For many, it was a period of complete price suppression, amplified by reputational damage.

Hope, Then Hesitation

Meanwhile, in July 2023, there was a brief moment of optimism. Judge Torres Analisa ruled that XRP by itself is not a security. Moreover, Ripple's XRP sales on exchanges did not constitute securities transactions.

With this legal clarity, the price surged from $0.42 to $0.92 overnight. This rally emerged as U.S. exchanges that delisted XRP reinstated the coin.

However, the SEC's decision to appeal brought uncertainty roaring back, though it did deter further exchange listings.

Fast-forward to November 2024. Chairman Gary Gensler announced his resignation, and XRP jumped to above $3 a few weeks later. The move canceled out most of the losses from the previous seven years.

Meanwhile, a retracement ensued with XRP settling in the $2 range. While the S.E.C dropped the case against Ripple in March 2025, XRP saw a muted reaction, revealing something deeper.

According to All Things XRP, despite the long-awaited legal victory, the market had moved on. "No fireworks. No moon," said the commentator.

The Real Cost: Lost Time, Not Just Price

While XRP's performance has vastly improved compared to previous years, many argue it should have achieved significantly higher valuations if not for the lawsuit. However, the price is just part of the equation. According to "All Things XRP," the real loss was time.

Specifically, Ripple's ambitions to dominate cross-border payments slowed as institutions, particularly in the U.S., paused partnerships. Competitors like Solana and Chainlink gained mindshare and market share.

"All Things XRP" stressed that XRP's suppression wasn't just a temporary price dip. It was a five-year stall in progress, momentum, and trust.

Rebuilding What Was Lost

With the legal saga behind it, XRP now faces a new challenge: apathy. The community is weary, and the markets are cautious. Even bullish developments like potential ETF filings, Ripple's acquisition, and RLUSD stablecoin integrations are facing measured responses.

The commentator charged the community with rebuilding the lost spirit and concluded with a vote of confidence that XRP would bounce back even more strongly.

"XRP's suppression wasn't just price. It was time.

Time lost. Opportunities missed. Reputation burned.

But now the chains are off.

Will Ripple rise to the occasion?

Or did the S.E.C clip its wings for good?

I'm betting that XRP will rise up.

Thanks for reading!

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