Ripple Lawsuit: Case Moved to Appeals Court, Not Dismissed

Crypto watchers took this as a sign that the long-running legal battle might be ending. However, deeper analysis suggests the case is far from over.

A recent development in the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple has sparked speculation about the case being dropped. However, a deeper analysis reveals that the case is still active and has been relocated on the SEC's website due to procedural changes.

After a post by crypto analyst Ash on X showed that a search for Ripple on the SEC's 'Litigation Release' page yielded no results, many assumed the case had been dropped. This section usually lists all civil actions filed by the SEC in federal courts.

However, a closer look at the SEC's website tells a different story. The lawsuit, which was originally announced on December 22, 2020, has been moved from the 'Litigation Release' section because the case has now progressed to the Court of Appeals for the Second Circuit.

Legal expert Jeremy Hogan clarified that while the Ripple case has been removed from the SEC's litigation section, it has simply been shifted to the “cases on appeal” section. According to Hogan, the lawsuit remains active on the appellate court's website, and no new filings have been made beyond the appeal process.

This isn't the first time such a move has occurred. The SEC took similar action in previous cases that advanced to appellate courts, such as the enforcement action against Aaron Govil. These legal transitions do not indicate settlement or case dismissal; they reflect procedural changes as cases move through the judicial system.

As of now, the lawsuit remains unresolved. The SEC is still actively appealing a district court ruling that favored Ripple in parts of the case. The battle continues, with major deadlines approaching in the coming months.

The SEC officially filed its opening appeal brief on January 15, 2025. The commission seeks to overturn the lower court's decision, which granted Ripple a partial victory by ruling that its programmatic sales and other distributions of XRP were not securities transactions. The SEC, however, is pushing back against this ruling, particularly on XRP sales to retail investors.

Conversely, Ripple has set April 16, 2025, as its deadline to file a response. If approved, this brief will address the SEC's arguments and aim to solidify Ripple's prior court win. Additionally, Ripple is using this opportunity to challenge the part of the ruling that classified its sales of XRP to institutional investors as securities transactions. This aspect of the case previously led to a $125 million fine against the company.

Meanwhile, a lawyer commenting on the case dismissed the significance of the SEC website’s removal of the lawsuit, stating:

“The SEC website does not matter. The appeal is still open in the Court's nationwide PACER system. I am an attorney. I just logged in. The last entry is Ripple's request for a time extension to file its Brief. The case status is still shown as Active. That may change soon.”

As Ripple's legal battle continues, CEO Brad Garlinghouse has been making headlines with his statements on the broader crypto market. Recently, Garlinghouse urged the industry to move beyond maximalism and embrace multiple digital assets for long-term growth.

In an interview with Fortune, Garlinghouse, who says he owns XRP, Bitcoin, and Ethereum, highlighted the need for unity in the crypto sector.

“I think the crypto industry has to get behind an asset to really drive it to mainstream adoption. We saw this early on with Bitcoin maximalists, who I think did a great job in the early days of getting Bitcoin to where it is today. But now, if you maximalize on one asset, you're inherently limiting the industry.”

However, Bitcoin maximalists are generally opposed to the idea of XRP being included in a national digital asset reserve. They maintain that Bitcoin is a neutral, apolitical, and decentralized monetary network that exists outside government control.

Unlike Bitcoin, which was fairly mined and has no central issuer, XRP was pre-mined, with Ripple Labs controlling a massive share of the supply. This pre-mine has led to accusations of centralization and unfair distribution, which maximalists argue disqualifies XRP from being a sound digital asset for the nation.

This is setting up a key crypto political battle in 2025. It may well be that there will end up being a Bitcoin Strategic Reserve and a Digital Asset Stockpile of American based crypto assets like XRP and Solana.

On the other hand, the confirmation of former Treasury Secretary nominee Scott Bessent, a pro-Bitcoin advocate, marks a significant development in the U.S. political arena.

Bessent's appointment reflects the increasing number of crypto-friendly figures entering U.S. politics, a shift that could have long-term implications for regulatory clarity in the industry.