Recent SEC Dismissals
This quarter, the SEC has dismissed several big crypto cases. Some of these are Coinbase, Consensys, Gemini, OpenSea, and Kraken. The firing is a signal that there will be a shift in how the SEC will proceed with cryptocurrency enforcement. Rule enforcement was the emphasis of the prior SEC chair, Gary Gensler. This is not going to occur under the new regime.
Hester Peirce, head of the SEC’s Crypto Task Force, noted that the enforcement-by-regime regime has injured the business. This change has led to a reduction in cases. However, Ripple remains an exception.
The Background of the Ripple Case
The Ripple case is one of the oldest crypto legal battles. It dates back to December 2020. The SEC accused Ripple of conducting a years-long unregistered securities offering through the sale of its XRP token. This case was seen as a blueprint for future crypto enforcement actions.
The timing of the case makes it unique. It was filed under Jay Clayton, the SEC chair during the Trump administration. Later, Gary Gensler, who was initially seen as pro-crypto, took over. However, XRP remained in regulatory limbo for years. Several US exchanges delisted the token, and it missed the crypto bubble of 2021-2022.
In 2023, Ripple scored a partial victory when Judge Analisa Torres ruled that exchanges’ sales of XRP were not securities. This was a major win for Ripple. The case did continue, though, with the SEC appealing the ruling in January of 2025.
Why Is the Case Still Ongoing?
There are several possible reasons why the Ripple case remains unresolved while others have been dismissed.
|
Reason |
Explanation |
|
Final Judgment Reached |
Unlike Coinbase, Ripple already received a final judgment, making dismissal more complicated. |
|
Ripple’s White House Ties |
Ripple has aligned with the Trump administration, yet the case persists. |
|
SEC’s Legal Integrity |
Some SEC attorneys may want to defend their interpretation of the law. |
|
Ripple’s Strategy |
Ripple might be pushing for a more favorable ruling rather than accepting the current judgment. |
Ripple’s Connection to the Trump Administration
Ripple’s recent political moves have raised eyebrows. CEO Brad Garlinghouse met with Donald Trump at Mar-a-Lago. Ripple reportedly donated $5 million in XRP to Trump’s inauguration fund. Donald Trump Jr. even followed Ripple on social media.
Despite these connections, the case remains unresolved. Many expected Ripple to be among the first cases dismissed under the new administration, but that hasn’t happened.
What Could Happen Next?
There are a few possible outcomes:
- The SEC and Ripple could agree to vacate the previous judgment.
- The case could continue, with the SEC putting up little resistance.
- The incoming SEC chair, Paul Atkins, might influence the final decision.
- Ripple might push for a ruling that clears its name entirely.
While the exact reason behind the ongoing case is unclear, it may not matter much in the long run. The regulatory landscape is shifting. The new administration seems more focused on dealmaking than legal battles.
The Ripple case is a relic of a different regulatory era. The outcome will likely have little impact on the broader crypto industry moving forward. As the SEC wraps up its crypto docket, the case will either be dismissed or reach a quiet resolution. The Trump administration appears set to rewrite the rules, prioritizing political alliances and business deals over strict enforcement.
