Key Notes

Key Notes:

The ongoing appeals by the US SEC and Ripple will likely delay a potential case dismissal in the near term.XRP price has significantly benefited from heightened speculation of the ending lawsuit.

The United States Securities and Exchange Commission (SEC) fully dismissed the case against Coinbase Global Inc. (NASDAQ: COIN), with the confirmation expected from the agency by next week. Following the announcement, the Ripple Labs and XRP global communities were thrilled with the expectations of a similar move in the ongoing lawsuit.

Furthermore, US President Donald Trump has met with the Ripple Labs executives, led by Brad Garlinghouse, thus assuring a closure to the ongoing lawsuit. Earlier this week, Trump posted on his social media platform, Truth Social, a Ripple and XRP article from different media outlets.

The SEC vs. Ripple case has been running since December 2020, with the agency alleging that XRP sales worth more than $1.3 billion were an unregistered securities offering. However, on July 2023, Judge Analisa Torres ruled that programmatic sales are not securities but noted that institutional sales of XRP violated securities laws.

As a result, Ripple Labs was fined $125 million for the XRP sales to institutional investors but without a disgorgement order. October 2024, the US SEC appealed the ruling in the Second Circuit Court of Appeals for XRP to be deemed a security, but Ripple cross-appealed the ruling on institutional sales.

The complex nature of the SEC vs. Ripple case is evident in the ruling by Judge Torres, whereby she noted that she will retain jurisdiction over the case for a year, until August 7 2025, to ensure the terms of the order are fulfilled.

Consequently, the US SEC and Ripple cannot just agree to drop the case unless Judge Torres is directly involved.

“While the SEC could choose to drop the appeal at the Second Circuit, they would also need to figure out how to approach the district court and possibly come to an agreement on the penalty ruling (reduce or ask to drop) and presumably get Torres’s blessing as the presided,” Eleanor Terrett, a FOX Business reporter, noted.

With the ongoing appeals, the closure of the SEC vs Ripple case could take longer, perhaps in the second half of 2025 or beyond.

Ripple’s case is more complicated considering the parties have an existing ruling to contend with. I could see a scenario in which the parties seek a penalty reduction order. Aside from that, the likelihood that the case goes before the panel is now reduced greatly, in my opinion

— Sherrie 🌸 (@CherryEmpress21) February 21, 2025

With the Trump administration pushing to provide clear crypto legislation through a supportive Congress and Senate, XRP demand has risen significantly in the recent past. More speculative traders have been trading the buy-the-rumors and sell-the-news in regard to XRP.

The large-cap altcoin, with a fully diluted valuation of about $261 billion and a 24-hour average traded volume of around $4.2 billion, has already broken out of a multi-year triangular consolidation. However, the altcoin has been trapped in a consolidation in the past few weeks in anticipation of a bullish breakout towards the thrilling phase of the 2025 bull rally.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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