Key Insights
- More and more signs are showing up about a possible resolution of the ongoing Ripple versus SEC case.
- The agency has dropped several high-profile cases against the crypto industry since its leadership change.
- A cryptic comment from former White House Communications Director Anthony Scaramucci has fueled speculation about the case being settled behind the scenes.
- Many industry leaders believe that not only is a resolution incoming, a spot XRP ETF approval is underway.
- The future of XRP and Ripple in the US remains to be seen, especially after the 7 March White House crypto summit.
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has been one of the biggest in crypto history.
Since the Donald Trump administration took the White House and replaced former SEC chair Gary Gansler, the agency has dropped lawsuits against major crypto companies like Coinbase, Gemini, and ConsenSys.
Interestingly, Ripple’s case is still on the precipice and has not been shelved like the others.
Here’s everything to know about the latest updates and how a recent statement by Anthony Scaramucci, the former White House Communications Director, has sparked speculation that the agency has quietly backed down.
Scaramucci’s Statement and Hints Of a Resolution
Scaramucci recently spoke with Sccott Melker during a podcast interview on The Wolf of All Streets.
Said interview was centered around the SEC dropping charges against major crypto firms like Gemini, Coinbase, ConsenSys, and others.
Interestingly, while Melker ticked off the list of dropped SEC cases, Scaramucci interrupted and mentioned “Ripple” twice.
While the former White House Communications Director didn’t elaborate on mentioning Ripple, his comment has fueled speculation about the SEC ”quietly” dismissing the case behind the scenes.
On official grounds, the case is still ongoing. However, many believe that a resolution is incoming.
In essence, if we see a settlement or dismissal of the ongoing lawsuit, it would be a game-changer for XRP holders, especially considering how Ripple has suffered through stifled growth since the case began in 2020.
The Ripple-SEC Lawsuit
Ripple’s legal troubles started in 2020, when the SEC accused it of selling XRP to investors as an unregistered security.
The interesting part about this case is that several other Initial Coin Offerings (ICOs) happened around the same time, with Ripple’s XRP sales being handled differently.
Despite this, the lawsuit went on as planned and led to the delisting of XRP across many US exchanges.
The price of the cryptocurrency crashed heavily as a result, before a final breakout above the $1 zone early this year.
Along the line in 2023, a court ruled partially in Ripple’s favor after declaring that the XRP sales on public exchanges did not constitute securities transactions.
On the other hand, it also ruled that the direct institutional sales of the cryptocurrency did violate securities laws.
While this was seen as a partial victory for Ripple, it left the company in legal limbo and has prevented the company from truly moving forward.
Why Hasn’t the SEC Dropped the Case Yet?
Despite withdrawing enforcement actions against other crypto firms, the SEC delay in Ripple’s case has raised several questions.
For example, the agency’s regulatory stance on crypto has softened this year in particular, especially after the exit of Gary Gensler.
This has led to questions about what could be going on under the hood between SEC and Ripple.
Reports show that Ripple is currently in behind-the-scenes negotiations with the SEC for a settlement, especially as it plans to go public.
On the other hand, Ripple is strategically aligning itself with political figures, including US president Donald Trump’s inner circle.
The company’s CEO recently met with Trump after Ripple made strong contributions to the Trump inauguration fund.
Many analysts believe that Ripple’s moves to align itself with the US government could play a role in resolving the case at the end of the day.
If the US government continues to shift towards a more crypto-friendly stance (with the White House Crypto Summit on 7 March), the SEC might be forced to have a rethink.
XRP’s Future and What Happens Next?
The rumors continue to swirl about a possible resolution between Ripple and the SEC.
Meanwhile, XRP investors continue to watch closely. If the SEC indeed drops the case officially, XRP could rise strongly in price, considering how one of the biggest hurdles in its growth has been regulatory from the start.
Additionally, if a spot XRP ETF is approved, such an event could boost investment and adoption for the cryptocurrency.
However, if all else fails and the case drags on, XRP’s price might wait slightly longer for the expected price surge.
The Ripple vs. SEC battle has been one of the most defining events for crypto regulation in the US, and while the agency has backed off from other cases, the future of Ripple and XRP remains to be seen.
Until the market gets an official confirmation about a case dismissal, the crypto community and individual investors need to remain alert.
Will Ripple finally break free from its legal struggles, or will the case continue to drag on?
