Why Hasn't the SEC vs. Ripple Case Been Resolved?

Despite the SEC's dismissal of cases involving major entities like Coinbase and Kraken, Ripple's legal dispute continues to linger, raising questions about why this case hasn't been settled yet.

Despite the U.S. Securities and Exchange Commission’s (SEC) recent move to drop cases against major entities like Coinbase and Kraken, and the pending approval of the first spot Bitcoin ETF, the legal dispute with Ripple continues to linger.

A Shifting Regulatory Landscape

In early 2025, the SEC took a decidedly different approach to enforcing cryptocurrency regulation. After a few years of heavy-handed moves that many in the crypto space interpreted as a “regulation by enforcement” strategy, the commission began to back off.

High-profile enforcement actions against companies like Consensys, Gemini, and OpenSea have all been withdrawn. As Commissioner Hester Peirce explained, this move towards ending over-regulation is supposed to enable the SEC to work on leveraging its skillset and expertise instead of using its massive resources to embark on wholesale enforcement proceedings that she maintains “negatively impacted the industry.”

Yet, Ripple’s case stands in stark contrast to these recent dismissals. While many assumed the case would quickly resolve, it remains ongoing.

The Origins of the Ripple Case

The SEC vs. Ripple case began in 2020 when the SEC accused Ripple of selling XRP in an unregistered offering of securities. It was one of the first big regulatory moves within the crypto space and provided the groundwork for subsequent actions. XRP suffered a harsh blow from the lawsuit, and a majority of the U.S. exchanges de-listed the token. The case had several implications for the broader crypto community, in that it stretched the boundaries of U.S. securities law to cover digital assets.

Ripple never held an ICO like Ethereum, yet they’ve been unfairly targeted by the SEC, spending $200 million on their defense.

In 2023, the court ruled in part for Ripple when it ruled that the sale of XRP on public exchanges was not a sale of securities. However, the court agreed with the SEC that straight sales of XRP to institutional investors were a violation of securities laws. This double verdict left the legal situation complicated for Ripple, which continues to appeal the ruling.

Why Hasn’t the Case Been Resolved?

The ongoing status of the Ripple case is a result of multiple factors. Among them is the 2024 injunction that Judge Analisa Torres issued suspending a ban against Ripple's selling XRP to institutional buyers in the absence of exemption by the SEC. Despite such a judgment appearing positive for XRP investors, it added more complexities to Ripple’s operations. The company would rather see the injunction lifted, but overturning such a ruling is not a straightforward process.

Pro-XRP attorney Jeremy Hogan believes the Ripple case will be settled before the approval of spot XRP ETFs.

According to pro-XRP attorney Jeremy Hogan, Ripple is likely attempting to negotiate the dissolution of this injunction with the SEC. “This is one last shot at getting the injunction dissolved, I believe,” Hogan stated, adding that it would require a carefully worded motion to be approved by both parties and then decided upon by the court. This process, according to Hogan, could stretch into April or May 2025.

This thinking aligns with the speculations of financial services lawyer James Murphy, who believes that the SEC might have been willing to settle by accepting the $125 million penalty and dropping the appeals. However, according to Murphy, considering the legal complications that the judgment poses for the company's future operations, especially with regard to an IPO or any plans to expand into new markets, Ripple is likely seeking a better deal—one that would void some of the more draconian provisions of the judgment.

The company's strong hand in the case can also be credited to its persistent efforts to align itself with influential political figures, particularly those in Trump's administration. CEO Brad Garlinghouse recently met with Donald Trump, and the company's contributions to Trump's inauguration fund and its move to align itself with a multi-token crypto reserve have been clocked by the National Archives and Records Administration. These political ties have led some to speculate that Ripple might be using its connections to gain leverage in its legal battle, though no formal comments have been made on the matter.

The Bigger Picture

This delay in the Ripple case also reminds us of the manner in which the regulatory landscape for cryptocurrencies continues to be disclosed. While earlier rulings, such as the Torres ruling, set useful legal precedents, the general regulatory landscape remains to be disclosed. As the SEC works to conform to this new Trump political and legal landscape, so too will it be less aggressively enforcement-focused in its actions, especially with regard to the uncertainty of the application of securities laws to digital currencies.

Ripple (XRP) was trading at around $2.48, up 5.64% in the last 24 hours at press time.

Within the context of new leadership within the SEC and regulatory policy, Ripple’s case is unusual. When other well-publici