As of Wednesday, February 26, 2025, the SEC vs. Ripple case, a key legal battle in the cryptocurrency industry, continues to divide opinions on its resolution timeline.
The case, centered on whether Ripple’s XRP token constitutes a security, has been ongoing for years, with both sides now in the appeals phase.
Recent developments, including SEC settlements with Coinbase and Robinhood, have sparked optimism, but Ripple’s case remains unresolved, fueling anxiety and debate.
The Current State of SEC Vs. Ripple Case
The SEC vs. Ripple case is currently in the appeals phase, following a mixed ruling by Judge Analisa Torres in the Southern District of New York.
The court determined that Ripple’s sales of XRP to retail investors on exchanges do not constitute the sale of securities, a partial win for Ripple.
However, it ruled that sales to institutional investors were unregistered securities, imposing a $125 million penalty on Ripple.
The SEC is appealing the retail sales ruling, seeking to classify those transactions as securities. Ripple, in turn, is appealing the $125 million penalty, arguing it is excessively high.
This dual appeal creates a complex legal landscape, with no final resolution in sight as of February 26, 2025.
Experts Weigh In On Resolution Timeline
Legal experts offer contrasting views on the case’s trajectory. Fred Rispoli, a prominent attorney and XRP supporter, expressed confidence in a swift resolution in a recent X post.
He proposed a simple fix: both Ripple and the SEC to drop their appeals, with Ripple agreeing to pay the $125 million penalty.
This would end the litigation, accepting the current rulings as final. Rispoli dismissed concerns about delays, calling the SEC’s excuses “cowardly” and stating, “The case is over regardless, either now or in a few months.”
His stance is that the case’s complexity is overstated, especially given the SEC’s recent settlements with other crypto firms like Coinbase and Robinhood, which were dropped earlier in 2025.
In contrast, James Murphy, known as MetaLawMan, a pro-crypto lawyer, suggests a more protracted path. In a recent X post, he highlighted the case’s ties to other ongoing lawsuits involving exchanges like Gemini, Kraken, and Binance.
MetaLawMan believes the SEC might delay resolution, waiting for a broader regulatory framework of leadership changes, such as the confirmation of Paul Atkins as SEC Chair.
He noted the complexity, particularly Judge Torres’ ruling and the $125 million penalty, suggesting the case won’t conclude until these related matters are settled.
The $125 Million Penalty: A Sticking Point?
The $125 million penalty, imposed for Ripple’s institutional sales, is a critical factor in the appeals. Ripple argues the amount is too high, seeking a reduction or elimination, while the SEC defends it as necessary for enforcing securities laws.
Rispoli’s proposed solution involves Ripple paying this penalty without further challenge, dropping its appeal, and closing the case.
However, MetaLawMan’s perspective suggests this might not happen soon, given the SEC’s broader enforcement strategy and the case’s legal intricacies.
The penalty’s role in delaying resolution remains unclear, with Rispoli speculating it’s a significant holdup, while MetaLawMan sees it as part of a larger regulatory puzzle.
The SEC vs. Ripple case’s outcome has far-reaching implications for XRP and the crypto industry. A favorable ruling for Ripple, particularly if retail sales remain non-securities, could set a precedent that other tokens are not securities, potentially boosting adoption and investment.
Conversely, an SEC victory, classifying more XRP transactions as securities, could tighten regulations, affecting trading and market confidence.
Source: https://www.thecoinrepublic.com/2025/02/27/sec-vs-ripple-expert-says-xrp-case-could-end-any-day-now-heres-why/