Ripple vs. SEC Update: Will New Leadership End the Case?
Debashree Patra6 Feb 20253 min read
The Ripple vs. SEC lawsuit has been dragging on for years, but new developments are bringing it back into the spotlight. With the SEC’s leadership in flux and a surprising shift in its stance on crypto, there’s growing speculation that the case could be heading for a major change – maybe even a resolution.
Could this long-running legal battle finally come to an end?
Let’s dive into what’s happening behind the scenes and why the next few months could be crucial.
A Change in the SEC’s Approach
Pro-XRP lawyer James Murphy, known as MetaLawMan, pointed out a significant shift in the SEC’s behavior. The agency recently decided not to oppose Coinbase’s motion for an interlocutory appeal, a surprising move given the SEC’s previous hardline stance under Chair Gary Gensler.
Murphy suggests that if the 2nd Circuit Court accepts the appeal, the SEC could settle or drop the case before it makes a final decision on whether crypto assets traded on secondary exchanges count as investment contracts.
This shift, combined with a more crypto-friendly administration, has led to growing speculation that Ripple’s case might also follow a similar path. If the SEC is softening its position, some believe that a dismissal or settlement could be on the horizon.
Trump’s Influence on Ripple and the Case
Since Donald Trump’s election win, rumors have circulated that the Ripple vs. SEC lawsuit could be dismissed. However, no formal action has been taken. Trump’s pre-inauguration meeting with Ripple CEO Brad Garlinghouse, along with Ripple’s political donations, are seen by some as part of a strategy to help settle the case.
These political ties could signal that Ripple’s toughest legal challenges are nearing an end.
Will the SEC Start Dropping Crypto Cases?
A crucial factor in this equation is the SEC’s leadership. Murphy noted that with no Senate-confirmed chair currently in place, a new appointment—expected around March or April—could influence the agency’s decisions on pending crypto lawsuits. He also mentioned Paul Atkins as a potential nominee under the Trump administration, describing him as a less controversial choice.
However, Murphy also pointed out that SEC Commissioners Hester Peirce and Mark Uyeda currently hold the votes to take action on cases, meaning that decisions could still move forward before a new chair takes office.
April: A Possible Turning Point for Ripple?
Even without a confirmed chair, SEC commissioners Hester Peirce and Mark Uyeda still hold the votes to take action on ongoing cases, including the Ripple lawsuit. As a result, the case could continue to move forward for now.
Recently, the SEC removed the Ripple lawsuit from its website, leading some to speculate that a settlement is in the works. However, attorney Sherrie clarified that the case is now listed under the Court of Appeals, as it has a new case number.
Ripple is expected to submit its appeal-related brief by April 16, with attorney Jeremy Hogan predicting that the SEC might drop the case around April or May – just as the leadership change takes place.
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