The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken an interesting turn, with speculation mounting that the SEC might abandon its appeal. XRPcryptowolf, an XRP advocate, recently suggested that the regulator could be reconsidering its position.
Looks like the SEC will be reversing the XRP lawsuit appeal
— XRPcryptowolf (@XRPcryptowolf) February 13, 2025
This case dates back to 2020 when the SEC accused Ripple, the blockchain developer behind XRP, of raising more than $1.3 billion through an unregistered securities offering in 2013. Since then, the lawsuit has been a defining challenge for Ripple, shaping regulatory discussions around cryptocurrencies and securities laws.
SEC’s Stance on XRP ETFs
The speculation gained traction after Ripple CEO Brad Garlinghouse remarked, “I recall pointing out, more than once, that this was inevitable,” in response to the SEC’s acceptance of Grayscale’s submission of 19b-4 filings for an XRP Exchange-Traded Fund (ETF). This isn’t the only XRP ETF application to receive acknowledgment; 21Shares’ XRP ETF filing, submitted in November, has also been recognized by the SEC. Additionally, other firms, including WisdomTree and Bitwise, have filed their own proposals. This acknowledgment marks a significant shift in the SEC’s approach, especially considering its previous rejection of applications for Solana spot ETFs. While this acceptance does not guarantee approval, it signals a change in the SEC’s approach to XRP. Following the acceptance, the SEC must publish all related filings in the Federal Register, after which it has up to 240 days to approve or reject the proposed ETFs. As Ripple prepares to file its own cross-appeal brief in April, Ripple’s Chief Legal Officer, Stuart Alderoty, previously predicted that new SEC leadership might reconsider the case. Currently, crypto-friendly SEC commissioner Mark Uyeda is serving as interim chair following Gary Gensler’s departure on January 20. Uyeda has introduced several pro-crypto measures absent under the previous administration, further fueling speculation that the SEC’s stance on Ripple could shift. However, the final decision may rest with Paul Atkins, the nominated SEC chair awaiting Senate confirmation. XRP has responded positively to these developments, gaining 2.52% in the last 24 hours to reach $2.81, though still 17.31% below its all-time high of $3.40. Over the past week, it has risen by 17.00%, outperforming the broader cryptocurrency market’s modest 2.90% gain.
If the SEC withdraws its appeal, analysts predict XRP could break past its all-time high of $3.55. However, if the appeal continues, XRP’s price could drop below $1.50 as uncertainty and legal risks weigh on investor sentiment.