As of March 24, 2025, the U.S. Securities and Exchange Commission (SEC) had yet to come out with a formal public release about the dropping of its appeal in the case of Ripple (XRP).
This creates a question has SEC really changed their way, or are they just delaying for some new angle.
The SEC’s litigation with Ripple started in December 2020 when the commission alleged that Ripple Labs and its management carried out an unregistered offer of securities by selling XRP tokens.
Years of litigation were brought to a conclusion on March 19, 2025, when Ripple CEO Brad Garlinghouse said that SEC is going to drop its case against Ripple after four years. He described it as a “long-overdue surrender,” restating that “XRP is not a security.”
“Progress is worth fighting for,” Garlinghouse said, adding that this victory “paves the way for a pro-crypto future.”
Reasons for the SEC’s Silence
There are a number of reasons why the SEC might not have issued an official statement:
Internal Approval Processes
Before making public announcements, the SEC often undergoes formal internal reviews and approvals. Even after agreeing to dismiss an appeal, the commission must complete these processes to ensure all legal and procedural aspects are addressed.
Scheduled Closed Meetings
The SEC normally addresses legal and enforcement issues in closed meetings. The next such meeting is on Thursday, March 27, 2025, at 2:00 PM ET. The Ripple case could be dealt with during this session, followed by an official announcement.
Ongoing Negotiations
Ripple continues to seek a cross-appeal related to previous XRP sales to institutional investors. Judge Analisa Torres had previously levied a $125 million fine and a permanent injunction on Ripple for breaching securities laws.
Ripple’s management has said there are continued negotiations with the SEC to potentially lift these penalties. The commission could be holding off on making a public statement until all sides of the case, including Ripple’s cross-appeal, are settled.
The announcement of the SEC withdrawing its appeal by Bard Garlinghouse has positively affected the market value of XRP. Upon the announcement, the price of XRP went up by around 13% to almost $2.56, and currently, it is trading at around $2.45.
SEC Statement On Coinbase:
When the SEC dropped its case against Coinbase, it promptly issued a public statement. However, in Ripple’s case, the agency has remained silent, raising speculation about internal delays or strategic reasons behind the lack of an official announcement.
Has SEC Actually Dropped The Case Against Ripple?
While Ripple and its supporters are enjoying the victory, the case still has loose ends to tie up. In the Video shared by Ripple CEO, Brad Garlinghouse He Clearly mentions that SEC will drop its appeal. However till date SEC has made no formal statement of closing the case. There is still a slight chance of this courtroom drama to continue.
Why Hasn’t the SEC Closed the Ripple (XRP) Case Yet?
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been one of the most closely watched cases in crypto history. Despite a partial victory for Ripple in July 2023, the case remains unresolved—leaving many in the XRP community wondering:
Why is the SEC silent? When will this case finally end?
In this blog post, we’ll break down the latest developments, the SEC’s possible motives, and what could happen next.
1. The Current Status of the Ripple vs. SEC Case
Key Ruling: XRP Is Not a Security (For Most Sales)
In July 2023, Judge Analisa Torres delivered a landmark decision, ruling that:
- XRP is not a security when sold to retail investors on exchanges.
- XRP is a security when sold directly to institutional investors.
This was a huge win for Ripple, but the case didn’t end there.
What’s Left to Decide?
- Penalties for Institutional Sales: The SEC is seeking fines for Ripple’s past sales to institutions.
- Final Judgment on Remedies: The court must decide how much Ripple must pay (if anything).
- Possible Appeals: The SEC could appeal parts of the ruling, dragging this out even longer.
2. Why Is the SEC So Quiet?
The SEC hasn’t made any major public statements about closing the case, and there are a few likely reasons:
A. The Legal Process Isn’t Over Yet
The SEC is still fighting for penalties, and until the judge makes a final decision, the agency won’t back down.
B. The SEC May Be Planning an Appeal
The SEC has suffered several crypto-related court losses recently (like the Grayscale ETF case). If they appeal the Ripple ruling, they’ll need a strong argument—so they’re staying quiet while preparing.
C. Political & Industry Pressure
- Crypto Advocates Push Back: Many in Congress (like Rep. Ritchie Torres) have criticized the SEC’s aggressive approach.
- Other Major Cases: The SEC is busy with lawsuits against Coinbase, Binance, and Kraken, which may be higher priorities.
D. Gary Gensler’s Stance on Crypto
SEC Chair Gary Gensler has taken a hardline approach, insisting most cryptos are securities. Closing the Ripple case without a clear win could weaken the SEC’s position in other lawsuits.
3. What Happens Next?
Possible Scenarios:
✅ Settlement (Unlikely but Possible)
- If Ripple agrees to a fine and future compliance terms, the SEC might settle.
- However, Ripple has the upper hand legally, so they may not accept harsh terms.
⚖️ Final Judgment on Penalties (2024)
- The court could rule on penalties in mid-to-late 2024.
- If the fine is small, the SEC may appeal.
🔄 SEC Appeals (Prolonging the Case)
- The SEC could challenge Judge Torres’ ruling, extending this battle into 2025 or beyond.
4. Why This Case Matters for Crypto
The outcome could set a precedent for how the SEC regulates cryptocurrencies:
- If Ripple Wins Fully → More clarity that tokens traded on exchanges aren’t automatically securities.
- If SEC Appeals & Wins → More uncertainty, possibly leading to stricter enforcement.
Final Thoughts: When Will This End?
The SEC’s silence doesn’t mean they’ve given up—they’re just waiting for the next legal move. Until the remedies phase concludes (and any appeals are resolved), the case remains open.
What do you think? Will the SEC finally close the case in 2025, or will this drag on for years? Let us know in the comments!
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