Ripple Case Update: Will the SEC Dismiss XRP Lawsuit After Closed-Door Meeting?

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Is the SEC Finally Ready to Let XRP Off the Hook? 🤔💸

In a plot twist that could only be rivaled by the most absurd of intergalactic soap operas, the U.S. Securities and Exchange Commission (SEC) decided to hold a closed-door meeting on February 27, 2025. Naturally, this has sent the rumor mill into overdrive, with speculation swirling like a Vogon constructor fleet about whether the agency will finally drop its appeal in the ongoing Ripple case. Spoiler alert: nobody really knows.

This legal saga, which kicked off in December 2020, revolves around the SEC’s audacious claim that Ripple sold XRP as an unregistered security. As if that wasn’t enough to keep the crypto community on the edge of their seats, the growing regulatory scrutiny and political pressure have everyone watching for any signs of resolution—like a cat watching a laser pointer, but with slightly less enthusiasm.

Will the SEC Dismiss XRP Lawsuit After Closed-Door Meeting?

The SEC’s Sunshine Act meeting, which sounds like a delightful picnic but is actually about enforcement actions, administrative proceedings, and litigation settlements, has left everyone guessing. The agenda remains as confidential as the recipe for Coca-Cola, but speculation is rife that the Ripple case was at least mentioned in passing, perhaps over a cup of lukewarm coffee. Recent decisions by the SEC to drop investigations into major crypto firms, including Coinbase and Uniswap, have fueled hopes that the XRP lawsuit may be nearing its conclusion—like a long-awaited sequel to a movie that nobody really wanted in the first place.

Legal experts, those brave souls who dare to tread into the murky waters of SEC speculation, have mixed opinions on what the SEC might do next. Former SEC lawyer Marc Fagel downplayed the speculation, stating,

“There’s no more reason to think Ripple is on the agenda than at the last 200 meetings.”

However, pro-XRP attorney Bill Morgan remains as confident as a cat in a room full of rocking chairs, pointing out that the SEC’s legal argument has weakened after Judge Analisa Torres ruled in 2023 that XRP itself is not a security. Take that, SEC!

Cynthia Lummis Stance on SEC Dropping Lawsuits Against Major Firms

U.S. Senator Cynthia Lummis, a vocal advocate for cryptocurrency regulations and possibly the only person who understands the Howey Test, recently highlighted the need for legal clarity on digital assets. She stated, “Most digital assets are not legally securities under the Howey Test. The United States is behind other countries in creating laws for digital assets.”

In a delightful twist of irony, Bill Morgan responded to Lummis’ statement by referencing the Ripple case and Judge Torres’ ruling. He wrote on X, “So you agree Judge Torres was correct in finding XRP itself is not a security in SEC v Ripple.” This exchange highlights the growing recognition among lawmakers and legal experts that the SEC’s classification of XRP may not hold up under legal scrutiny—like a house of cards in a windstorm.

Moreover, the SEC has recently withdrawn several high-profile lawsuits, signaling a possible shift in its enforcement strategy. The agency voluntarily dismissed its case against Coinbase Global Inc, and Consensys reached an agreement to dismiss the securities enforcement case related to MetaMask. Concurrently, the agency has also dropped cases against Uniswap, Gemini, OpenSea, Robinhood Crypto, and paused Binance’s case for 60 days—because who doesn’t love a good pause?

Potential Impact on XRP Price

The XRP lawsuit has had a strong effect on Ripple’s market standing, much like a bad haircut affects one’s social life. On February 28, XRP declined by 7.59%, following broader market trends with Bitcoin price falling below the $80k support. However, analysts believe that if the US SEC drops its appeal, XRP price could experience a major rally to $320—because why not dream big?

Historical price trends show that legal victories for Ripple have led to significant gains. When Judge Torres ruled in Ripple’s favor in July 2023, XRP surged by over 70%. A full dismissal of the XRP lawsuit could push the token toward its previous all-time high of $3.55—an amount that would make any crypto enthusiast weep tears of joy.

Market analysts are also discussing the potential approval of an XRP spot ETF, which could attract institutional investment, especially with the agency acknowledging some XRP ETF’s last week. If the Ripple case is resolved

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2025-02-28 08:30