SEC’s Evolving Approach: Implications for Ripple Labs
In recent developments, the U.S. Securities and Exchange Commission (SEC) has been closing investigations against key players in the crypto industry. This shift has prompted legal experts to examine its potential impact on Ripple Labs’ ongoing dispute with the SEC. Such actions could signal a new era of regulatory attitude toward digital assets.
Recent SEC Decisions: A Shift in Strategy
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On Monday, Robinhood announced that the SEC had concluded its inquiry into the company’s cryptocurrency operations. This investigation, which began following a Wells Notice in May 2024, ended without further action. Similarly, Coinbase CEO Brian Armstrong recently disclosed that a parallel SEC investigation into Coinbase had also been terminated. Likewise, OpenSea, a prominent NFT marketplace, witnessed the dismissal of its SEC probe.
SEC’s Changing Tactics Under New Leadership
These closures are part of a broader trend, where the SEC is systematically winding down legal actions against crypto-centric firms. This is a significant departure from the stringent approach under former SEC Chair Gary Gensler, who stepped down on January 20, 2025. With interim SEC head Mark Uyeda at the helm, a specialized crypto task force led by Commissioner Hester Peirce is now focusing on refining digital asset regulations.
Ripple vs. SEC: The Road to Resolution
What Is Prolonging the Ripple Case?
James “MetaLawMan” Murphy from Ludlow Street Advisors, LLC, recently took to social media to discuss the implications of the SEC’s recent actions. He noted, “The SEC has closed its investigation into Robinhood’s crypto business post-Wells Notice, indicating a recognition that most crypto tokens are not securities.” Murphy anticipates that cases against other companies like Gemini, Kraken, Binance, and Ripple might also be dismissed.
However, the Ripple case presents unique challenges. Murphy points out that resolving the Ripple case involves complexity due to a final judgment already in place. Negotiations between the SEC and Ripple’s legal team are necessary to address the judgment and the funds held in escrow, which requires time.
Future Prospects for Ripple
Pro-XRP attorney Jeremy Hogan commented on the SEC’s rapidly evolving stance, suggesting that the Ripple case might be dropped once new SEC Chair Paul Atkins assumes office. “The Coinbase Case was dismissed with prejudice, meaning it cannot be refiled, not even with minor concessions,” Hogan noted, indicating the SEC’s readiness to make significant crypto regulatory changes.
In summary, while other cases may be quickly dismissed, Ripple’s situation is more intricate due to the existing legal judgment. Both parties need to reach an agreement on handling the judgment, a process that demands careful negotiation.
At the time of writing, XRP is trading at $2.2191.
