The XRP price increased to $3.19 following a crucial closed-door meeting by the US Securities and Exchange Commission (SEC), which could end the multi-year XRP lawsuit between Ripple and the SEC.
XRP Lawsuit: The Crypto Community is Optimistic
The closed meeting discussed critical matters such as injunctive action settlements, resolution of litigation claims, and discussion of issues associated with enforcement proceedings. Hence, investors and other industry participants expressed enthusiasm over the likely closure of the Ripple case that began back in 2020.
The SEC sued Ripple for selling XRP as an unregistered security to raise funds without approaching regulators for their approval. The XRP lawsuit was among 83 crypto-related enforcement actions begun under the tenure of former Chair Gary Gensler, whom many industry players consider a hardliner on crypto companies.
Industry observers generally view the lawsuit’s result as potentially setting a legal precedent for digital asset regulation in the United States.
First Meeting of the new Commission
This week’s meeting is the first under Acting SEC Chair Mark Uyeda. Uyeda has been very vocal about reforming cryptocurrency regulations, particularly classifying digital assets as securities.
Earlier this week, Uyeda unveiled a new crypto task force to review existing enforcement policies. In November 2024, Uyeda was the first to speak about the Commission’s approach toward cryptocurrencies and said that the Commission’s war on crypto must end, including enforcement actions solely based on failure to register without allegations of fraud or harm.
Uyeda’s appointment is the first sign of a possible policy shift under the new administration. The general understanding is that blockchain and crypto companies might get friendlier regulatory conditions in the days ahead. This Ripple case could be the start of a larger regulatory change.
Industry Experts Weigh In
Still, industry observers are split on whether a resolution is at hand. Former SEC attorney Marc Fagel wrote on social media that a settlement might only happen after crypto-friendly Paul Atkins takes over as Chair of the SEC.
Fagel said that this week’s meeting is routine, and those expecting monumental developments could be disappointed. However, crypto legal expert John Deaton was more optimistic, saying this could be the path toward Uyeda and Atkins dismissing the case altogether.
The XRP Lawsuit: A Change for Crypto Regulation?
Industry participants have closely followed the XRP lawsuit because of its potential implications, which extend beyond XRP to the wider cryptocurrency industry. According to legal experts and market participants, the outcome of this case could set a critical precedent that will influence how digital assets are regulated in the US.
If the case favors Ripple, it could lead to a more transparent and friendly regulatory environment and a more structured regulatory environment. Also, this XRP lawsuit has exposed the inconsistencies in crypto regulation.
Critics say the lack of a unified framework has left businesses and investors open to enforcement actions.
XRP’s Market Response and Broader Implications
These developments in this XRP lawsuit have caused the crypto community to watch XRP’s price movements keenly. According to on-chain data, XRP’s price is up 4.5% in the last 24 hours.
The recent upsurge has also revived interest in how Ripple could lead as a disruptor of traditional monetary systems with its cross-border transactions. Analysts also say if the case ends positively, it will further improve the adoption of XRP for financial institutions.
Several banks worldwide already use Ripple’s technology to enable real-time gross settlements. Meanwhile, a negative ruling could result in significant market disruptions.
Major exchanges would delist XRP, and regulators would further interfere with Ripple’s operations. The crypto market would also feel the consequences, as there could be heavy regulatory scrutiny of other tokens regarding their compliance with securities laws.
