XRP News – When Will The SEC Drop Its Ripple Case?

The message to the cryptocurrency industry is clear: The Trump administration is taking a vastly different approach than its predecessor. SEC Commissioner Hester Peirce, now leading the agency’s Crypto Task Force, explicitly declared an end to the “regulation by enforcement” era:

“The decision by the previous Commission to shift this function to the Division of Enforcement by engaging in a large-scale regulation-by-enforcement initiative harmed the American public, adversely affected the industry, and impeded the ability of the Commission’s skilled and dedicated professional staff to use their expertise as it was intended to be used.”

Yet, amidst this wave of case dismissals, one stands out as a glaring exception—Ripple and XRP. While nearly every other enforcement action from the Gensler era has been scrapped, Ripple remains locked in a legal standoff.

The XRP Price has performed well during a volatile week, thanks to Trump’s announcement that XRP will be part of the US Strategic Crypto Reserve. Source: XRPLX

The Ripple Case: A Pre-Gensler Anomaly

Ripple’s legal battle with the SEC is not just another enforcement action—it is one of the longest-running and most consequential cases in crypto history. The lawsuit, filed in December 2020, alleged that Ripple’s sale of XRP constituted an unregistered securities offering spanning years. At the time, this was a groundbreaking move, setting the tone for future SEC enforcement against the industry.

Strangely, though, this lawsuit predates both Gensler and President Joe Biden’s administration. It was launched in the final weeks of Trump’s first term, under SEC Chair Jay Clayton. That unique timing made it an anomaly even before the broader crackdown on crypto intensified under Gensler.

For years, XRP remained a regulatory outcast—However, in a crucial ruling in 2023, Judge Analisa Torres handed Ripple a partial victory, determining that XRP sales on exchanges did not constitute securities transactions since buyers didn’t rely on Ripple’s efforts for profit. This was seen as a major win for crypto and a blow to the SEC’s aggressive stance.

Despite the ruling, the case dragged on, culminating in a $125 million penalty against Ripple in August 2024. As the Biden administration was winding down, the SEC filed an appeal on January 15, 2025, seeking to challenge Torres’ decision. Ripple, for its part, filed a cross-appeal in October 2024 but has yet to formally act on it.

Why Hasn’t the Ripple Case Been Dropped?

With the Trump administration taking a pro-crypto stance, it would make sense for the SEC to drop its appeal and close the Ripple case—just as it did with Coinbase and others. Yet, for some reason, the lawsuit remains unresolved.

There are several possible explanations:

1. Ripple Might Actually Want This Fight
   Unlike Coinbase, which was still in the early stages of litigation before its case was dismissed, Ripple already has a final judgment against it. If the SEC were to simply walk away, Ripple would be left with the existing $125 million fine and a five-year restriction on raising capital through securities offerings.
   If Ripple wants to clear its name fully, it needs a more favorable ruling—one that eliminates its “bad actor” designation. Legal expert James Murphy speculated that Ripple might be negotiating for a deal better than a simple fine-and-dismissal arrangement.
2. The SEC Could Be Quietly Helping Ripple on Appeal
   Another theory is that the SEC isn’t aggressively fighting its appeal but is keeping the case open to allow Ripple to push for a stronger legal precedent. The agency could intentionally take a passive role in court, making it easier for Ripple to secure a favorable appellate ruling.
   A similar strategy was used under the Obama administration, where the Justice Department allowed the Defense of Marriage Act (DOMA) to be challenged in court while refusing to defend it aggressively. If the SEC were to adopt a similar approach here, it could pave the way for a precedent that benefits Ripple—and by extension, the broader crypto industry.
3. Internal Resistance at the SEC
   Despite Trump’s shake-up of the agency, there may still be internal factions within the SEC that believe the Ripple ruling should be overturned. Some SEC attorneys have long viewed the Torres decision as a misinterpretation of securities law and might be resisting efforts to drop the case.
   It’s possible that these individuals are holding out until Trump’s nominee for SEC chair, Paul Atkins, is confirmed before making any final decisions on the case.

Ripple’s Cozy Relationship with Trump

Adding another layer to this puzzle is Ripple’s apparent alignment with the new administration.

Ripple CEO Brad Garlinghouse has been actively courting Trump’s favor. In January, he met with Trump at Mar-a-Lago alongside Ripple’s chief legal officer, Stuart Alderoty. Reports also surfaced that Ripple donated $5 million in XRP to Trump’s inauguration fund.

Brad Garlinghouse has been meeting with Trump, Source: X

The efforts seem to be paying off. In February, Trump’s son, Donald Trump Jr., followed Ripple on X (formerly Twitter). Then, on March 2, Trump announced that XRP would be part of a new Strategic Crypto Reserve.

With this level of political backing, one would expect the SEC to have already dismissed Ripple’s case—yet it hasn’t.

The Likely Outcome: A Quiet Dismissal

Given the broader pattern of SEC retreats under Trump, it’s likely that the Ripple case will be quietly dropped in the coming weeks. Either the SEC and Ripple will reach an agreement, or the case will simply fizzle out as the agency reorients its approach to crypto regulation.

Even if the case drags on, it is unlikely to impact future enforcement. The new regulatory approach under Trump appears to favor negotiation and industry engagement over aggressive litigation. In this environment, Ripple’s legal battle is more of a relic from a bygone era than a defining moment for crypto’s future.

For now, all eyes remain on the SEC’s next move—but the writing on the wall suggests Ripple’s long legal odyssey is nearing its end. That will leave the way clear for XRP price predictions to explode, and when XRP is added to the Us Crypto Reserve, things could get spicy indeed for the XRP price. For now, we wait.