The XRP community has spotted a major sign that the four-year-long lawsuit between Ripple and the U.S. SEC may soon come to an end.
This newfound confidence emerged amid the SEC’s recent expression of readiness to consider XRP ETFs, with pundits suggesting the Ripple lawsuit no longer holds weight.
Ripple SEC Case Losing Weight Under New Leadership
For context, the Ripple lawsuit initially ended in August 2024 following the final decision from Judge Analisa Torres, which included fines for Ripple’s violations. However, the SEC revived the case a few months later with a notice of appeal.
The matter has since progressed, with the SEC filing its opening brief earlier this year. Meanwhile, Ripple is preparing to file its own cross-appeal brief in the case, with a deadline in April.
Notably, this appeal commenced under the former SEC leadership with ex-chair Gary Gensler. Since his departure in January, crypto-friendly chair Mark Uyeda has been acting as the interim head.
In his short time in office, Uyeda has pushed out numerous pro-crypto developments that were absent under the previous administration, including deliberate efforts to provide clear rules for crypto regulations by establishing a Crypto Task Force.
Recent Developments Indicate SEC Might End Ripple Case
A recent development with more direct bearing on XRP is the SEC’s acknowledgment of Grayscale’s application for an XRP ETF.
Specifically, on Thursday, the SEC acknowledged NYSE’s application to list Grayscale’s XRP ETF. This marks the first step in the approval process.
This recognition is significant because it suggests the SEC may now consider an XRP ETF rather than reject it outright.
This move contrasts with the SEC’s earlier stance on Solana, where it rejected applications for Solana spot ETFs. The SEC will now review the application, a process that could take up to 240 days.
Bloomberg analyst James Seyffart argued that previous SEC leadership would have dismissed the XRP ETF application, citing that as recently as December, the agency denied a similar application for Solana. He added that this move slightly increases the already favorable odds of approval for the ETF.
This essentially highlights the shifting environment under the new SEC leadership. In parallel, Nate Geraci, co-founder of the ETF Institute, expressed that the acknowledgment could be a huge statement regarding the SEC’s ongoing case against Ripple.
In a follow-up commentary, Geraci expressed surprise that more people aren’t discussing the SEC’s acknowledgment of the XRP ETF filing, especially considering the ongoing litigation with Ripple.
He pointed out that the SEC easily could have rejected the filing but instead chose to accept it.
“It sends an enormous message in my opinion,” Geraci said.
Shocked more people aren’t talking about SEC accepting XRP ETF filing…
They have open litigation w/ Ripple.
Meanwhile, they just acknowledged filing of ETF holding asset in dispute (they easily could have rejected this filing).
Enormous message IMO.
— Nate Geraci (@NateGeraci) February 14, 2025
The Road to a Potential End of the Ripple Lawsuit
Notably, the sentiment that the new SEC leadership could soon drop the Ripple case has been gaining traction in the community, and the latest development has fueled it even further.
Initially, commentators took inspiration from the regulator’s decision to pause the lawsuit against Binance. They argue a similar move could extend to the Ripple case.
Already, Ripple’s Chief Legal Officer Stuart Alderoty has predicted that the new SEC leadership would withdraw the ongoing appeal. However, some suggest it would take a substantive chairman to initiate the move. Currently, the nominated SEC chair, Paul Atkins, is awaiting Senate confirmation.
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