Is XRP Finally Free ? Ripple’s Case Against The SEC Wraps Up

The SEC case against Ripple is reaching a decisive turning point. After more than four years of legal confrontation, the U.S. Securities and Exchange Commission (SEC) appears ready to close this emblematic case.

A trial coming to an end, but at what cost ?

In December 2020, the SEC launched lawsuits against Ripple Labs, accusing the company of illegally raising funds by selling XRP as an unregistered security. The case has gained considerable significance due to the regulatory uncertainty surrounding the crypto industry. After several years of proceedings and judicial twists, the ruling of August 2024 marked a decisive turning point, as a court ruled that programmatic sales of XRP on exchanges did not constitute an offer of financial securities, yet still fined Ripple $125 million.

Eleanor Terrett, a journalist from Fox Business, in a post on platform X (formerly Twitter) dated March 12, indicates that the case between the SEC and Ripple is “being resolved”, after both parties filed an appeal and a counter-appeal regarding the $125 million judgment rendered in August 2024.

Both Ripple and the SEC have contested this verdict, leading to a series of appeals and counter-appeals. Ripple’s Chief Legal Officer, Stuart Alderoty, stated that the case is now “much further along than other actions abandoned by the SEC.” He adds that Ripple remains “optimistic about a quick resolution.” If both parties drop their appeals, the initial ruling will stand. However, in case of disagreement over the fine, Ripple and the SEC will have to return to a judge for potential renegotiation.

Between politics and regulation : a decision with far-reaching implications

If the end of this trial brings relief to Ripple and its investors, it also raises questions about the timing and the true motivations of the SEC. For several months, the U.S. regulator has dropped several lawsuits against major players in the crypto space like Coinbase, Kraken, and Consensys, indicating a notable shift under the Trump administration. One element fueling the controversy: the financial ties between Ripple and some Republican political groups.

Indeed, Ripple contributed $45 million to Fairshake, an influential political action committee in the last U.S. elections, and donated $5 million for Trump’s presidential inauguration. Some observers see this as a potential conflict of interest, especially given that other crypto companies that backed Trump, like Coinbase, have also seen their matters stall. However, Alderoty rejects these accusations, asserting that “the SEC’s decision is independent of any political pressure and reflects a change in perspective on the crypto industry.”

With the end of this trial, the coming months will be crucial for the crypto industry. If the SEC reduces its regulatory aggressiveness, it could encourage more businesses to establish in the United States, rather than operate in a legal gray area. Conversely, if the agreement between Ripple and the SEC includes major concessions, it could set a precedent for other upcoming trials. In any case, this case represents a change in the relationship between U.S. regulators and the crypto ecosystem, and could reshape the contours of regulation in the years to come.