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The U.S. Securities and Exchange Commission (SEC) held a closed-door Sunshine Act meeting on February 27, 2025, fueling speculation that the agency may be reconsidering its appeal in the ongoing Ripple lawsuit. The case, which dates back to December 2020, hinges on the SEC’s claim that Ripple sold XRP as an unregistered security.
Speculation Grows Around SEC’s Next Move
The confidential nature of the meeting has led to widespread discussion within the crypto community. The SEC’s agenda included enforcement actions, administrative proceedings, and litigation settlements, prompting many to believe that the XRP lawsuit was part of the discussions.
Legal experts remain divided on whether the SEC will drop its appeal. Former SEC lawyer Marc Fagel dismissed the speculation, stating, “There’s no more reason to think Ripple is on the agenda than at the last 200 meetings.” However, pro-XRP attorney Bill Morgan sees a shift in the SEC’s position, noting that Judge Analisa Torres’ 2023 ruling, which determined that XRP itself is not a security, has significantly weakened the SEC’s legal stance.
Regulatory Shifts and Political Pressure
U.S. Senator Cynthia Lummis has called for legal clarity on digital assets, arguing that “Most digital assets are not legally securities under the Howey Test.” Morgan responded to her statement by highlighting Judge Torres’ ruling in favor of Ripple, adding to the growing recognition that XRP may not meet the SEC’s criteria for securities classification.
Recent SEC decisions to withdraw lawsuits against major crypto firms—including Coinbase, Uniswap, Gemini, OpenSea, and Robinhood Crypto—have added to the speculation. The agency’s 60-day pause on the Binance lawsuit further signals a potential change in enforcement strategy.
Potential Impact on XRP Price
XRP experienced a 7.59% decline on February 28, following broader market trends. However, analysts predict a significant price rally if the SEC drops its appeal. Some even suggest a surge to $320, referencing historical price movements when Ripple won key legal battles.
Furthermore, the possibility of an XRP spot ETF approval could attract institutional investment, strengthening the token’s position in the market. The next major deadline is April 16, 2025, when Ripple must submit its reply brief. If the SEC withdraws before then, the case could reach a long-awaited resolution, potentially triggering a major rally for XRP.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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