XRP News Today: Ripple SEC Battle Persists While Other Crypto Cases Settle—Why the Delay?

The Securities and Exchange Commission (SEC) has wrapped up several high-profile cryptocurrency cases in recent months, yet one significant case remains unresolved: Ripple’s legal battle over its token, XRP.

Despite the SEC’s dismissal of cases involving major entities like Coinbase and Kraken, Ripple’s legal dispute continues to linger, raising questions about why this case hasn’t been settled yet.

A Shifting Regulatory Landscape

In early 2025, the SEC took a decidedly different approach to enforcing cryptocurrency regulation. After a few years of heavy-handed moves under former SEC Chair Gary Gensler, which many in the crypto space interpreted as a “regulation by enforcement” strategy, the commission began to back off.

Ripple may be delaying the case, negotiating to vacate parts of Judge Torres’ ruling to avoid securities law violations and potential IPO hurdles. Source: MetaLawMan via X

High-profile enforcement actions against companies like Consensys, Gemini, and OpenSea have all been withdrawn. As Commissioner Hester Peirce explained, this move towards ending over-regulation is supposed to enable the SEC to work on leveraging its skillset and expertise instead of using its massive resources to embark on wholesale enforcement proceedings that she maintains “negatively impacted the industry.”

Yet Ripple’s case stands as a stark contrast to these recent dismissals. While many assumed the case would quickly resolve, it remains ongoing.

The Origins of the Ripple Case

The SEC vs. Ripple case began in 2020 when the SEC accused Ripple of selling XRP in an unregistered offering of securities. It was one of the first big regulatory moves within the crypto space and provided the groundwork for subsequent actions. XRP suffered a harsh blow from the lawsuit, and a majority of the U.S. exchanges de-listed the token. The case has had several implications for the broader crypto community, in that it stretched the boundaries of U.S. securities law to cover digital assets.

Ripple never held an ICO like Ethereum, yet they’ve been unfairly targeted by the SEC, spending $200 million on their defense. Source: Digital Asset Investor via X

In 2023, the court ruled in part for Ripple when it ruled that the sale of XRP on public exchanges was not a sale of securities. However, the court concurred with the SEC that straight sales of XRP to institutional investors were a violation of securities laws. This double verdict left the legal situation complicated for Ripple, which continued to appeal the ruling.

Why Hasn’t the Case Been Resolved?

The ongoing status of the Ripple case is a result of multiple factors. Among them is the 2024 injunction that Judge Analisa Torres issued suspending a ban against Ripple’s selling XRP to institutional buyers in the absence of exemption by the SEC. Despite such a judgment appearing positive for XRP investors, it added more complexities to Ripple’s operations. The company would rather see the injunction lifted, but overturning such a ruling is not a straightforward process.

Pro-XRP attorney Jeremy Hogan believes the Ripple case will be settled before the approval of spot XRP ETFs. Source: JackTheRippler via X

Jeremy Hogan, a pro-XRP attorney, noted that Ripple is likely attempting to negotiate the dissolution of this injunction with the SEC. “Ripple only has one shot at getting the injunction dissolved,” Hogan explained, adding that it would require a carefully worded motion to be approved by both parties and then decided upon by the court. This process, according to Hogan, could stretch into April or May 2025.

Ripple’s Strategy

Legal experts speculate that Ripple may be negotiating behind the scenes, pushing for a settlement that would address the injunction and avoid any future complications for the company. According to James Murphy, a financial services lawyer, the SEC might have been willing to settle by accepting the $125 million penalty and dropping the appeals. However, Ripple is likely seeking a better deal—one that would void some of the more draconian provisions of the judgment.

Brad Garlinghouse’s Trump meeting and Ripple’s crypto ties are under scrutiny. Source: Brad Garlinghouse via X

The company’s strong hand in the case can also be credited to its persistent efforts to align itself with influential political figures, particularly those in Trump’s administration. CEO Brad Garlinghouse recently met with Donald Trump, and the company’s contributions to Trump’s inauguration fund and its move to align itself with a multi-token crypto reserve have been under the spotlight. These political ties have led some to speculate that Ripple might be using its connections to gain leverage in its legal battle, though no formal comments have been made on the matter.

The Bigger Picture

This delay in the Ripple case also reminds us of the manner in which the regulatory landscape for cryptocurrencies continues to evolve. While earlier rulings, such as the Torres ruling, set useful legal precedents, the general regulatory landscape remains to be disclosed. While the SEC works to conform to this new Trump political and legal landscape, so too will it be less aggressively enforcement-focused in its actions, especially with regard to the uncertainty of the application of securities laws to digital currencies.

Ripple (XRP) was trading at around $2.48, up 5.64% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Within the context of new leadership within the SEC and regulatory policy, Ripple’s case is unusual. When other well-publicized crypto cases get rejected or settled immediately, Ripple’s case drags on. The delay has been a matter of conjecture for both the XRP community and lawyers. Some believe the case will be dropped in the future, while others see a resolution through settlement or a favorable appellate court decision.

Final Thoughts

The Ripple-SEC case has become a symbol of the broader regulatory struggles facing the cryptocurrency industry. With the SEC’s changing approach and Ripple’s strategic negotiations, it remains to be seen how this legal battle will conclude. While some speculate that a settlement could be near, the complexity of the injunction and Ripple’s desire to avoid long-term regulatory restrictions mean that a resolution might not come until mid-2025. For now, the case continues to unfold, keeping the crypto community on edge.