Ripple vs. SEC: Is the Legal Battle Reaching Its Final Stage?
2025-01-29
Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has taken another turn, adding further uncertainty to an already complex case.
In a surprising move, the SEC recently removed references to the lawsuit from its website, fueling speculation that a resolution may be near. However, court filings indicate that the case is still active, with Ripple seeking an extension to respond to the SEC’s latest appeal.
This case, which has stretched over four years, has major implications for the broader crypto industry. At its core is a key question: Is XRP a security? The answer could influence how digital assets are classified and regulated in the U.S. moving forward.
For now, XRP holders and the crypto market remain in a state of uncertainty. While some believe a settlement is imminent, others argue that the legal process still has a long way to go.
In this article, we’ll break down where the case stands, how it got to this point, and what it means for XRP’s price.
Current Status of the Ripple Lawsuit
The SEC first filed a lawsuit against Ripple Labs in December 2020, alleging that the company raised over $1.3 billion by selling XRP as an unregistered security.
Source: SEC
This legal battle has since become one of the most significant cases in crypto history, as it could set a precedent for how digital assets are classified under U.S. law.
In mid-2023, Ripple secured a partial legal victory when a judge ruled that XRP itself was not a security when traded on secondary markets.
However, the court also ruled that Ripple’s direct institutional sales of XRP could be classified as securities transactions, which left the case in a grey area. The SEC, dissatisfied with this ruling, filed an appeal to overturn key aspects of the decision.
The latest development in the case came in January 2025, when references to the lawsuit were quietly removed from the SEC’s website.
While some XRP supporters saw this as a sign that the case might be ending, legal experts pointed out that the case remains active on official court record systems.
Ripple’s legal team has requested an extension until April 2025 to respond to the SEC’s appeal, meaning the legal battle is far from over.
Despite the uncertainty, one thing is clear: the SEC’s decision to remove the case from its main website section has introduced a new layer of speculation about what could come next.
The History of the Ripple vs. SEC Lawsuit
Ripple’s legal troubles with the SEC began in December 2020 when the regulator accused the company of conducting an unregistered securities offering through XRP sales.
The SEC argued that Ripple directly sold XRP to institutional investors as an investment contract, making it subject to securities laws.
Ripple, on the other hand, has maintained that XRP functions as a digital currency, similar to Bitcoin and Ethereum, and should not be classified as a security.
The lawsuit quickly became a high-profile case in the crypto industry, with many viewing it as a test of how regulators will treat digital assets in the future.
The case dragged on for years, with multiple rulings and appeals. The most significant ruling came in July 2023, when a U.S. District Judge ruled that XRP was not a security when traded on public exchanges.
However, the court also found that Ripple’s direct sales to institutional investors were securities transactions, allowing the SEC to claim partial victory.
Following this ruling, Ripple was ordered to pay a $125 million fine, significantly lower than the $1.3 billion the SEC had initially sought. The SEC then filed an appeal, attempting to challenge parts of the decision that went against its arguments.
With new political leadership in the U.S. and potential shifts in regulatory priorities, there have been rumours that the case could be dropped. However, no official statement has confirmed this yet, and Ripple continues to fight its legal battle in court.
XRP Price Reaction: Volatility and Uncertainty
XRP’s price has been highly volatile throughout this lawsuit. Every new development—whether a court ruling, an SEC appeal, or rumours of a settlement—has caused significant price swings.
In November 2024, after Trump’s election victory, XRP saw a sharp 400% surge as investors speculated that the new administration might be more crypto-friendly and potentially drop the case. However, the excitement faded when the SEC moved forward with its appeal.
More recently, in January 2025, XRP’s price initially spiked following the removal of the lawsuit reference from the SEC’s website, as some traders interpreted it as a sign of an imminent resolution. However, this rally was short-lived, as court records confirmed that the case is still active.
Currently, XRP is stagnating with large wicks on both sides, indicating strong market indecision. Traders are unsure whether to position for a bullish breakout in case of a favourable ruling or prepare for another sell-off if the legal battle drags on.
Beyond the lawsuit, XRP’s price movements are also being influenced by broader crypto market trends. Bitcoin’s performance, regulatory developments in other countries, and institutional adoption of digital assets all play a role in shaping market sentiment.
As long as the lawsuit remains unresolved, uncertainty will continue to affect XRP’s price, making it one of the most unpredictable assets in the crypto space.
Read more about XRP:
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XRP (XRP), Market Cap, Price Today & Chart History
Conclusion
The Ripple vs. SEC lawsuit remains one of the most important legal battles in the cryptocurrency industry.
While the SEC’s removal of the lawsuit reference from its website has sparked speculation, the case is still ongoing, with Ripple expected to respond to the SEC’s appeal by April 2025.
If you are interested in capitalizing on XRP’s potential, you can use Bitrue as the platform to trade it with, as it provides all the necessary markets for you to choose from.
Frequently Asked Questions
1. Is the Ripple vs. SEC lawsuit over?
No, the case is still active. Despite the SEC removing references to the lawsuit from its website, official court records confirm that the case is ongoing, with Ripple expected to respond to the SEC’s appeal by April 2025.
2. What was the partial ruling in Ripple’s favour?
A U.S. District Judge ruled in 2023 that XRP is not a security when traded on public exchanges. However, Ripple’s direct institutional sales of XRP were classified as securities transactions, leading to a partial win for both sides.
3. How has XRP’s price reacted to the lawsuit?
XRP has been highly volatile, with major price swings based on legal developments. It surged 400% after Trump’s election but later dropped as the SEC continued its appeal. Recently, it experienced a brief rally after the SEC removed the case reference from its website, but uncertainty remains high.
Investor Caution
While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.
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