SEC's Ripple Meeting: XRP's Fate Hangs in Balance

The U.S. Securities and Exchange Commission (SEC) held a closed-door meeting on February 27, 2025, sparking speculation about a potential dismissal of its appeal in the ongoing Ripple case. The legal dispute, which began in December 2020, revolves around the SEC's claim that Ripple sold XRP as an unregistered security. The crypto community eagerly awaits any signs of resolution in the XRP lawsuit.

The SEC's Sunshine Act meeting focused on enforcement actions, administrative proceedings, and litigation settlements. While the agenda remained confidential, speculation grew that the Ripple case was a topic of discussion. Recent decisions by the SEC to drop investigations into major crypto firms, including coinbase and Uniswap, fueled hopes that the XRP lawsuit might be nearing its conclusion.

Legal experts offered mixed opinions on the SEC's next move. Former SEC lawyer Marc Fagel downplayed 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 remained confident in Ripple's position, pointing out that the SEC's legal argument had weakened after Judge Analisa Torres ruled in 2023 that XRP itself is not a security.

U.S. Senator Cynthia Lummis, a vocal advocate for cryptocurrency regulations, recently highlighted the need for legal clarity on digital assets. She stated, "Most digital assets are not legally securities under the Howey Test. The United States is behind other countries in creating laws for digital assets." In response, Bill Morgan referenced the Ripple case and Judge Torres' ruling, further emphasizing the growing recognition among lawmakers and legal experts that the SEC's classification of XRP may not hold up under legal scrutiny.

The SEC has recently withdrawn several high-profile lawsuits, signaling a possible shift in its enforcement strategy. The agency voluntarily dismissed its case against coinbase global Inc and reached an agreement to dismiss the securities enforcement case related to Consensys' MetaMask. Concurrently, the agency has also dropped cases against Uniswap, Gemini, OpenSea, Robinhood Crypto, and paused Binance's case for 60 days.

The XRP lawsuit has significantly impacted Ripple's market standing. On February 28, XRP declined by 7.59%, following broader market trends with Bitcoin price falling below the $80k