A debate inside the XRP community has reopened around one familiar question: how much of XRP’s disappointing price performance can still be blamed on the SEC lawsuit against Ripple?
Digital Asset Investor argued that XRP was uniquely damaged by the five-year legal battle. He pointed out that XRP had once overtaken Ethereum in market capitalization and was gaining ground before regulatory pressure changed the story.
He also referenced conversations around the Evernorth Nasdaq listing, saying the message he took away from Ripple was that the roadblocks are now gone.
That view is being challenged by pro-Ripple lawyer Bill Morgan.
Bill Morgan Says the Lawsuit Excuse Is Getting Old
Morgan argued that the SEC case can no longer be used as the main explanation for XRP’s current price.
The SEC and Ripple formally dismissed their respective appeals on August 7, 2025, resolving the civil enforcement action. The existing final judgment, including the $125 million penalty, remained in place.
Morgan’s argument is based on what happened afterward.
The lawsuit cannot be an excuse all the time for XRP‘s current price. That excuse is getting quite old. XRP price has fallen 45% in the last 12 months and about 60% since the litigation with the SEC was finally resolved on 7 August 2025. The lawsuit was always an overrated and exaggerated excuse in my opinion. Good news or positive developments in the lawsuit did have a positive impact on price but it was always short-term and then largely lost. It seems the settlement of the lawsuit caused no lasting positive effect on price. Anticipation of settlement of the lawsuit in the months before settlement had a bigger impact but that has mostly been reversed over the last 13 months
— bill morgan (@Belisarius2020) October 18, 2026
He says XRP has fallen roughly 60% since the litigation was finally resolved and about 45% over the past 12 months. His conclusion is that legal clarity did not produce the lasting repricing many XRP holders expected.
CoinDesk recently made a similar observation from a different angle, noting that XRP remains well below its January 2018 peak even though Bitcoin, Ethereum and several other large crypto assets have surpassed previous cycle highs.
Read also: Ripple Made 5 Big Moves in 10 Days, and the XRP Community Is Connecting the Dots
Was the Lawsuit Still Important?
The fairest reading is that both sides have a point, but they are talking about different periods.
The SEC case clearly created years of uncertainty around Ripple and XRP. It affected exchange access in the U.S., institutional perception and the legal status surrounding XRP.
But Morgan’s criticism becomes stronger when looking at the period after August 2025.
Once the appeals were dismissed, that specific overhang was largely removed. Yet XRP did not enter a sustained price expansion.
That means investors now have to look beyond the lawsuit and ask harder questions about demand, liquidity, token utility and whether Ripple’s institutional growth translates into direct XRP usage.
The lawsuit may explain part of XRP’s history.
It becomes much harder to use it as the primary explanation for what XRP is doing today.
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