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

The U.S. Securities and Exchange Commission (SEC) held a closed-door meeting on February 27, 2025, raising speculation about whether the agency will drop its appeal in the ongoing Ripple case.

The legal dispute, which began in December 2020, revolves around the SEC’s claim that Ripple sold XRP as an unregistered security. With growing regulatory scrutiny and political pressure, the crypto community is watching closely for any signs of resolution in the XRP lawsuit.

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

The SEC’s Sunshine Act meeting focused on enforcement actions, administrative proceedings, and litigation settlements. While the agenda remains confidential, speculation is growing that the Ripple case was a topic of discussion. 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.

Legal experts have mixed opinions on the SEC’s next move. 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 confident in Ripple’s position, pointing out that the SEC’s legal argument has weakened after Judge Analisa Torres ruled in 2023 that XRP itself is not a security.

Cynthia Lummis Stance on SEC Dropping Lawsuits Against Major Firms

U.S. Senator Cynthia Lummis, a vocal advocate for cryptocurrency regulations, 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.”

Responding to Lummis’ statement, Bill Morgan referenced 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.

Moreover, the SEC has recently withdrawn several high-profile lawsuits, signaling a possible shift in its enforcement strategy.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 Binance’s case being paused for 60 days.

Potential Impact on XRP Price 

The XRP lawsuit has had a strong effect on Ripple’s market standing. 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.

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.

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, XRP may gain further regulatory clarity, making it more appealing to large financial firms.

While speculation around the SEC meeting continues, no official decision has been announced regarding the XRP lawsuit. The next key deadline is April 16, 2025, when Ripple must submit its reply brief related to the SEC’s appeal. If the SEC decides to withdraw its appeal before then, the case could effectively be resolved.