Ripple vs. SEC Showdown: XRP Price Reacts Unexpectedly to Ripple’s Legal Developments

However, despite recent positive developments, the price of XRP has failed to react as anticipated. The latest developments suggest that the case could soon come to a close, yet XRP’s price has suffered notable losses, leaving investors and analysts puzzled.

XRP Fails to Rally as Ripple Inches Closer to Legal Victory

Despite significant shifts in the SEC’s approach, XRP saw a marked decline, dropping around 0.39% in the last 24 hours and 24% in the past week, according to Brave New Coin data. The price dropped at a time when the ongoing lawsuit between Ripple and the SEC is seemingly nearing its conclusion—a scenario that would typically be bullish for the asset.

Ripple’s XRP was trading at around $2.40, down 0.39% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Notably, the SEC had recently reassigned Jorge Tenreiro, one of the top officials in its crypto unit, to another department. This, of course, is a plus for Ripple since he was the man in charge of overseeing the lawsuit against it. Downsizing its crypto enforcement team adds speculation that the agency might be softening up and probably reconsidering its approach toward the case for a Ripple-positive resolution.

The SEC meeting to support U.S. companies could be positive news for Ripple and XRP. Source: Amelia via X

Yet, with all this development, the price of XRP barely moved. According to crypto expert Del Crypto, the reshuffling of the SEC officials may be a sign that the Commission is ready to close its case against Ripple, but the market’s lack of enthusiasm points to broader factors at play in sentiment.

A Broader Market Downturn at Play

One plausible explanation for XRP’s price slump is the bearish sentiment that is currently sweeping through the broader cryptocurrency market. Bitcoin, as perceived by many to be leading this market, has been struggling to hold key support levels, which has trickled down into the altcoin world, such as XRP.

XRP could also be doing this based on speculation related to when the lawsuit Ripple filed against the SEC is finally settled. With new blood in Washington, D.C., there’s been speculation that the lawsuit is going to be dropped, especially if there’s a pro-crypto administration. Yet despite these positive predictions, the price of XRP continues to fall.

Will the Lawsuit Finally Conclude?

The million-dollar question lingers over when the long battle will finally rest in days to come. Stuart Alderoty, Chief Legal Officer at Ripple, still remains optimistic owing to the transition of leadership inside the SEC for changing the views of the commission regarding crypto regulations. Ripple has maintained that the lawsuit from the SEC is part of a broader “war on crypto” and that the charges against the company stem from its failure to register XRP as a security—a process that was unclear at the time.

The SEC lacks jurisdiction over Ripple’s XRP sales outside the U.S., raising questions about Ripple’s stance. Source: Mickey_B_Fresh via X

Legal analysts also share Alderoty’s optimism, referring to recent developments in other crypto-related cases, such as the SEC failing to oppose Coinbase’s motion for an interlocutory appeal. This change in direction could indicate that the SEC is relaxing its stance, and legal experts believe the agency might soon drop or settle a slew of crypto-related lawsuits, including Ripple’s case.

XRP’s Potential for a Bullish Reversal

Despite the current uncertainty over the lawsuit, some analysts remain bullish on XRP’s long-term prospects. Analysts such as Dark Defender have projected that XRP could surge as high as $8 in the near future, drawing comparisons to the cryptocurrency’s performance during the 2017 bull run.

Ripple’s XRP price has the potential for a 1,500% hike in 2025. Source: EGRAG CRYPTO via X

Crypto analyst Egrag Crypto has also noted that the price of XRP is tracking its 2017 movement, which could result in a 1,500% rally that might see it shoot up as high as $27 in weeks.

Not to mention the stablecoin projects Ripple has participated in, like RLUSD, that have also contributed to a portion of optimism. As the adoption of Ripple’s stablecoin expands to more exchanges, analysts said this gives even more prospects for price appreciation; positive on-chain metrics reflect that market confidence is growing.

Brad Garlinghouse Is XRP’s Secret Weapon

Brad Garlinghouse’s potential connections to the White House crypto advisory council could significantly alter the trajectory of Ripple’s legal battle with the SEC. The core issue in the SEC vs. Ripple case revolves around whether XRP is a security, a designation that has caused legal uncertainty and market hesitation.

If Garlinghouse is advising the U.S. government on blockchain policy, he could help shape clearer, crypto-friendly regulations, ensuring that digital assets like XRP receive fair treatment under new legal frameworks. The SEC, under previous leadership, has taken an aggressive stance on crypto enforcement, often without clear legislative backing. A direct line to the White House could allow Ripple to advocate for policy reforms that emphasize utility over outdated securities laws, making it harder for the SEC to maintain its aggressive position against XRP.

Potential for a Negotiated Settlement

Garlinghouse’s political proximity could also increase pressure on the SEC to reach a negotiated settlement rather than continue its drawn-out legal battle. Regulatory agencies don’t operate in a vacuum—they respond to political pressure, industry lobbying, and shifts in executive priorities. If the White House advisory council pushes for a more innovation-friendly regulatory approach, the SEC may be encouraged to compromise rather than risk losing credibility. A settlement would provide much-needed regulatory clarity for Ripple, allowing XRP to be freely traded on U.S. exchanges again and paving the way for new partnerships. The SEC has a long history of reaching settlements in high-profile cases when broader political forces shift the regulatory landscape, and Ripple could benefit from new leadership directives that prioritize growth over litigation.

Strengthening Ripple’s Position in the Global Market

Beyond just resolving the SEC case, Garlinghouse’s White House connections could position Ripple as a key player in shaping U.S. digital asset policy, which would have global ripple effects. Many international regulators have hesitated to fully embrace Ripple due to the SEC lawsuit’s uncertainty. If the case is resolved favorably, Ripple could rapidly expand its operations in the U.S. and beyond, attracting institutional investors, banking partners, and fintech collaborations that were previously hesitant.

A government-backed Ripple could also influence global regulatory standards, ensuring that XRP is viewed as a legitimate asset class worldwide. This would restore confidence in XRP, allowing it to compete on an equal playing field with traditional payment systems and even CBDCs. Ultimately, a well-connected Ripple could drive the mass adoption of XRP in cross-border payments, settlements, an XRP crypto reserve, and financial infrastructure.

The Future of Ripple and XRP

Looking ahead, the Ripple legal team is working to file an appeal brief due by April 16. The new developments in this case are particularly being closely observed by legal scholars with the appointment of the new chair for the SEC. Speculation around the possible withdrawal of the SEC case might now be a different story for XRP, specifically if the incoming leadership took on a more relaxed approach to the regulation of digital currencies.

The lawyer who initiated the SEC’s case against Ripple has resigned, signaling a potential win for Ripple. Source: Amelia via X

While the market is waiting for the final outcome of the lawsuit, the increasing influence of Ripple in the crypto ecosystem, along with its expansion into stablecoin projects, could provide solid ground for XRP’s recovery.

In the short term, however, XRP’s price continues to remain under pressure, with strong resistance levels to prevent any kind of significant rally. While traders currently focus on both legal developments and market sentiment, it remains to be seen whether XRP can break free from the shadow of the ongoing legal battle and find its way to new highs.

Watch – XRP Price Prediction and Analysis Video

Looking Forward: A Critical Juncture for Ripple and XRP

The Ripple vs. SEC lawsuit has reached a critical juncture, with multiple legal developments signaling a potential resolution. However, the lack of price movement in XRP suggests that investors remain cautious, waiting for more concrete outcomes before committing. While some analysts remain optimistic about XRP’s future, the broader market conditions and the ongoing legal uncertainty will continue to play a significant role in shaping the coin’s price trajectory in the coming months.