SEC Removes Ripple Lawsuit Press Release: Speculation Swirls, Case Proceeds

The U.S. Securities and Exchange Commission (SEC) recently removed the press release related to its lawsuit against Ripple from its official website, sparking speculation within the crypto community about a potential resolution. However, further analysis suggests that the removal is a procedural action tied to the case's progression to the Court of Appeals for the Second Circuit.

The lawsuit, initially announced on December 22, 2020, accused Ripple of unlawfully selling XRP as an unregistered security. The SEC's decision to take down the press release has led many in the crypto space to speculate that the case may have reached a settlement or been dropped altogether. However, the Community Notes feature on X clarified that the withdrawal of the announcement does not indicate a resolution.

The litigation release section of the SEC's website typically focuses on cases still being handled in federal district courts. When a case moves to a higher court, the SEC often removes it from this section. This is not an isolated incident, as similar removals have been noted in other cases that advanced to the court of appeals, including an enforcement action involving Aaron Govil.

Contrary to speculation about the case's resolution, the legal battle remains active. The SEC is continuing its appeal against the district court's previous ruling, which had granted Ripple a partial victory regarding certain XRP sales. On January 15, 2025, the SEC submitted its opening appeal brief to the Second Circuit, seeking to overturn the lower court's decision on Ripple's programmatic sales and other distributions of its native token.

Ripple, on the other hand, is preparing to submit its response on April 16, 2025. If the court grants approval, Ripple will present arguments defending its previous victory while challenging the district court's classification of its XRP sales to institutional investors as investment contracts. This ruling had initially led to a $125 million penalty imposed on the company in 2023.

The SEC's removal of the Ripple lawsuit from its website should not be interpreted as an indication of a settlement or case dismissal. Instead, it is a procedural action related to the case's progression to the Court of Appeals for the Second Circuit. Both parties are set to present their arguments in the coming months, with Ripple aiming to reinforce its earlier victory while contesting the penalties imposed on its institutional sales.