- Despite leadership changes, the SEC continues its legal battle with Ripple, prioritizing the case for resolution.
- XRP’s price is impacted by the legal uncertainty, with future growth depending on the case’s outcome and regulatory shifts.
Even though XRP ETFs are under the U.S. Securities and Exchange Commission (SEC) review, as predicted by a CNF post, with the question of whether XRP is now considered a commodity, the SEC continues its legal battle against Ripple Labs, maintaining its appeal despite recent leadership changes and industry speculation.
In this article, we will explore why the regulator won’t abandon its appeal despite the ongoing legal challenges.
In October 2024, the SEC filed a notice of appeal challenging a ruling that determined XRP, Ripple’s native cryptocurrency, was not a security when sold to retail investors. If the decision had been wrong, it could have been seen as a significant victory for Ripple and the broader cryptocurrency community.
In a recent tweet, Fox journalist Eleanor Terrett stated that it’s possible SEC leadership is expecting Donald Trump’s pick for chair, Paul Atkins, to be confirmed by that time.
🚨NEW: On the @SECGov pausing ongoing litigation against #crypto firms — I’m told by multiple legal sources that the SEC has been prioritizing cases with imminent court deadlines, which is one explanation for why we haven’t seen pause requests in the @Ripple and @krakenfx cases.…
— Eleanor Terrett (@EleanorTerrett) February 19, 2025
Despite the departure of SEC Chair Gary Gensler and the nomination of Paul Atkins, known for his pro-crypto stance, the SEC has not withdrawn its appeal. Legal experts suggest that the agency is prioritizing cases with imminent court deadlines, which may explain the continued pursuit of the Ripple case.
Leadership Changes and Their Implications
President Donald Trump’s nomination of Paul Atkins as the new SEC Chair has generated optimism within the crypto industry. Atkins, a former SEC Commissioner, is recognized for advocating reduced regulatory burdens and supporting financial innovation, including digital assets.
His appointment is expected to shift the SEC’s approach toward a more crypto-friendly regulatory environment. However, until Atkins is officially confirmed and assumes his role, the SEC’s current trajectory regarding ongoing litigation, such as the Ripple case, remains unchanged.
Market Reactions and Future Outlook
The protracted legal dispute has significantly impacted XRP’s market performance. Following the SEC’s appeal, XRP experienced a price decline, reflecting investor uncertainty surrounding the lawsuit’s outcome.
The cryptocurrency’s future trajectory may heavily depend on the resolution of this legal battle and the regulatory stance adopted by the SEC under new leadership.
At the time of writing, XRP is trading at $2.72, reaching an intraday high of 7.56%, with a 10.21% increase over the past week, according to CoinMarketCap data. See XRP price chart below.
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