TLDR
- XRP Army volunteers provided crucial research that saved Ripple thousands in legal fees during SEC lawsuit
- Judge Torres cited XRP holder affidavits in her ruling that XRP tokens are not securities
- Over 75,000 XRP holders submitted legal documents supporting Ripple’s defense against SEC charges
- Community found historical SEC speeches and documents supporting Ripple’s fair notice defense strategy
- Four-year lawsuit ended August 2024 with Ripple paying $125 million instead of SEC’s requested $2 billion
The XRP community played a key role in Ripple’s victory against the Securities and Exchange Commission. Crypto lawyer John Deaton says the “XRP Army” made a real difference in the case outcome.
The SEC sued Ripple Labs in December 2020. The agency claimed Ripple sold XRP tokens as unregistered securities. Ripple denied these charges and fought the case for four years.
Judge Analisa Torres ruled in July 2023 that XRP itself is not a security. She found that only some institutional sales could be considered securities offerings. The case officially ended in August 2024 when both sides dropped their appeals.
Deaton represented XRP holders through an amicus brief during the lawsuit. He says over 2,000 exhibits were filed in the case. Judge Torres cited only a few dozen items in her final decision.
Among those citations were XRP holder affidavits and Deaton’s legal brief. This proves the community made a real impact on the ruling. “The proof is in the decision itself,” Deaton wrote on social media.
Community Research Saves Legal Costs
The XRP Army conducted extensive research without being paid. They searched for SEC speeches and government statements about cryptocurrency regulation. This information supported Ripple’s fair notice defense strategy.
Deborah McCrimmon is Ripple’s Deputy General Counsel. She confirmed the community’s research proved extremely valuable during the case. The volunteers found evidence that would have cost thousands in legal fees.
“I could have paid lawyers thousands of dollars to do that,” McCrimmon said on The Penta Podcast. “Yet they were finding it and posting it on Twitter, and that was tremendously helpful.” The community provided this work for free.
Over 75,000 XRP holders submitted affidavits supporting Ripple’s position. These documents showed how people actually purchased and used XRP tokens. The affidavits countered the SEC’s claims about investor expectations.
Case Impact on Crypto Industry
McCrimmon said the community gave the court important perspective. Their involvement showed Judge Torres that the lawsuit affected many people beyond just Ripple as a company. This helped demonstrate the wide reach of SEC enforcement actions.
The XRP Army organized lobbying efforts throughout the four-year battle. They maintained pressure on regulators and kept public attention on the case. This sustained advocacy helped support Ripple’s legal arguments.
Ripple ultimately paid a $125 million penalty to settle the case. This amount was much lower than the $2 billion the SEC originally demanded. The company avoided admitting wrongdoing in the settlement agreement.
The case sets a precedent for other cryptocurrency projects facing SEC enforcement. Ripple continues developing XRP for cross-border payments and financial services applications.
