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SEC Pondering Potential Dismissal of Ripple and Coinbase Legal Battles

SEC potentially considering withdrawal of litigation against Ripple and Coinbase. XRP surges to $2.45 with emerging crypto regulations and increased understanding of staking.

Securities Commission Pondering End to Litigation against Ripple and Coinbase
Securities Commission Pondering End to Litigation against Ripple and Coinbase

In a significant development for the cryptocurrency industry, there is speculation that the Securities and Exchange Commission (SEC) may withdraw its litigation against Ripple. This potential move follows a policy change in the US regarding cryptocurrencies, undoing steps taken in the past concerning enforcement.

Clarity on the rules might be appealing to banks, financial technology companies, and payment providers, as it would change the way the market operates regarding XRP and other tokens. The SEC's potential withdrawal could put Ripple at an advantage in widening collaboration with banks and payment facilitators worldwide.

The SEC initiated a legal action against Ripple in December 2020, alleging unregistered sales of securities. If the SEC withdraws its appeal, this would mark the end of the legal battle and establish regulatory clarity that XRP is not a security when traded on public exchanges. This clarity is expected to have a significant positive impact on the crypto market by reducing regulatory uncertainty for XRP and potentially other tokens, influencing broader crypto market regulation and investor confidence.

In the past 24 hours, the price of XRP has risen by 12% and is currently trading at about 2.45. If the SEC officially dismisses the lawsuit, it is likely to rise to the level of $3. The increase in institutional interest can be indicated by the activity of the whales, who have been stacking XRP, and retail traders are supporting the trend. The volume of trades has grown by 40% in comparison with the previous week, demonstrating a high level of activity.

Affected blockchains will be proof-of-stake networks such as Ethereum, Solana, and XRP Ledger. If Ripple experiences complete regulatory clarity, some of the largest U.S.-based exchanges could introduce XRP trading, potentially boosting prices due to increased liquidity. Ripple could roll out new yield-earning products to the holders of XRP, helping them achieve their goal of combining blockchain with international payments.

Analysts suggest that there is a chance of an increasing growth in the crypto market when changes in policy have been officially confirmed. Crypto analysts on TradingView point out an increasing number of people joining staking pools. Institutional investors may be tempted to join DeFi projects when legal clarity is known.

It is important to note that the SEC has not yet withdrawn its appeal in the longstanding litigation against Ripple, which has prevented the case from officially concluding. The SEC’s pending appeal keeps the May 2023 partial court ruling—the one that determined institutional XRP sales violated securities law but public sales did not—from becoming final. There is speculation around mid-August 2025 as a potential time frame for a decision or clarification of intent by the SEC.

The mood on the market has changed, contributing to the increment of the overall crypto capitalization by $400 billion. The overall crypto capitalization has incremented by $400 billion due to relief on the regulatory front. Legal charges, such as high-notification suits against exchanges, are pending. Coinbase was also subjected to a lawsuit concerning trading unregistered securities.

In conclusion, the litigation’s resolution hinges on the SEC's next procedural move. A withdrawal of the SEC’s appeal would finalize the court’s ruling, release Ripple’s penalty funds to the Treasury, and likely produce a more defined regulatory environment for cryptocurrencies similar to XRP. Industry analysts are speculating that announcements will be made in the coming week regarding this significant development.

  1. The potential withdrawal of the SEC's lawsuit against Ripple may establish regulatory clarity that XRP is not a security when traded on public exchanges, which is expected to have a significant positive impact on the crypto market.
  2. Affected blockchains will include proof-of-stake networks such as Ethereum, Solana, and XRP Ledger, and if Ripple experiences complete regulatory clarity, some of the largest U.S.-based exchanges could introduce XRP trading, potentially boosting prices due to increased liquidity.
  3. If the SEC officially dismisses the lawsuit, the price of XRP is likely to rise to the level of $3, and the volume of trades has grown by 40% in comparison with the previous week, demonstrating a high level of activity.
  4. Institutional investors may be tempted to join DeFi projects when legal clarity is known, as indicated by the growing number of people joining staking pools on platforms like TradingView.
  5. The increase in institutional interest can be seen in the activity of the whales, who have been stacking XRP, demonstrating confidence in the token's potential future growth.
  6. Industry analysts are speculating that announcements will be made in the coming week regarding this significant development for the cryptocurrency industry, and the mood on the market has changed, contributing to the increment of the overall crypto capitalization by $400 billion.

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