XRP News Today: Ripple vs. SEC legal battle stalls, XRP drops 14.2% amid prolonged uncertainty

The protracted legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) remains in limbo as of late July 2025, with no ruling yet on whether XRP qualifies as an unregistered security under federal law. The case, which has spanned over four years, continues to navigate the SEC’s internal approval process, delaying finality despite Ripple and the SEC appealing different aspects of a prior ruling. Former SEC lawyer Marc Fagel clarified that rumors of a fourth closed-door meeting on the appeal were unfounded, emphasizing that the case is now before the Court of Appeals, not SEC commissioners [1]. The SEC’s request for Judge Analisa Torres to reconsider her March 2025 decision was denied, further complicating the path to resolution.

The delay stems from the need for both parties to withdraw their appeals before Judge Torres’s ruling can take full effect. While Ripple may be prepared to drop its cross-appeal, the SEC faces an internal approval process to formally withdraw its appeal. Fagel noted that such procedural steps are standard in cases that reach court, contrasting with faster resolutions in non-litigated investigations [1]. For XRP holders, the extended legal uncertainty has coincided with market volatility, including a brief surge above $3.60 in mid-July followed by a retreat to $3.09. Analysts attribute this to broader speculative pressures, particularly around potential XRP spot ETF approvals.

Market participants remain divided on the implications of the lawsuit. Jamie Elkaleh, Chief Marketing Officer of Bitget Wallet, highlighted that Ripple’s March 2025 partial victory—where Judge Torres ruled part of the SEC’s case invalid—has bolstered institutional confidence. This has spurred developments like ProShares’ XRP futures products, which analysts view as precursors to ETF filings. Ryan Lee of Bitget Research predicted XRP could reach $3.50–$4 within weeks if ETF discussions accelerate, though he cautioned that macroeconomic shifts or regulatory hurdles could disrupt this trajectory [2]. However, the SEC’s deliberate pace has raised questions about its efficiency, with critics arguing the process risks stifling innovation in the crypto sector.

The lawsuit’s outcome could set a critical precedent for regulating digital assets. If the SEC drops its appeal, the judge’s ruling would become final, potentially clearing the way for XRP’s broader adoption and ETF approvals. Conversely, a prolonged resolution might reinforce regulatory ambiguity, prolonging market uncertainty. While the legal battle absorbs much attention, market dynamics are increasingly tied to institutional adoption and liquidity improvements, which analysts argue could mitigate legal risks for investors. Until the SEC provides clarity, however, the case will remain a focal point for debates over crypto regulation and market structure [2].

Sources:

[1] Coinpedia, [title1] Ripple vs SEC Lawsuit News: No Ruling Yet as Standard Approval Process Slows Progress, [url1] https://coinpedia.org/news/ripple-vs-sec-lawsuit-news-no-ruling-yet-as-standard-approval-process-slows-progress/

[2] Coindesk, [title2] Analysts See XRP Hitting $4, Solana $250 as ETF Buzz Builds, [url2] https://cryptoadventure.com/analysts-see-xrp-hitting-4-solana-250-as-etf-buzz-builds/