The XRP community is abuzz with speculation as new developments suggest the SEC may be on the verge of abandoning its appeal against Ripple Labs. Market watchers and industry experts are closely analyzing the regulatory shift, which could have significant implications for the broader crypto sector.
Ripple Appeal Likely to Be Dropped as SEC Reconsiders Crypto Enforcement
According to former SEC enforcement chief John Reed Stark, the agency’s efforts to classify digital assets as securities are diminishing. He highlighted that the agency has already retracted an appeal concerning whether crypto firms should be categorized as securities dealers.
This move aligns with a broader strategy to reduce enforcement actions against the crypto sector. The SEC has recently undergone internal restructuring, renaming its crypto enforcement unit to a cyber unit.
Also Read: Citadel Securities Shakes Up Crypto Markets with Game-Changing Move
Additionally, key figures involved in past crypto litigations have been replaced, reinforcing that the agency is shifting its priorities. Stark pointed out that these moves are part of a transformation under acting SEC Chair Mark Uyeda, who is reportedly steering the agency away from aggressive legal actions against digital asset firms.
This shift has sparked anticipation within the XRP community, with many expecting the SEC’s appeal against Ripple to be dropped. Stark asserted that the commission is unlikely to pursue further court cases arguing that digital assets are securities.
The SEC’s Frantic and Unprecedented Rampage to Dismantle its Crypto-Enforcement Program Continues: This Time, Halting Two SEC Appeals Dead in Their Tracks (Buckle up XRP Army, the Ripple Appeal Has Got To Be Next on the SEC Chopping Block)
The U.S. Securities and Exchange… pic.twitter.com/y6cMnhVRoi
— John Reed Stark (@JohnReedStark) February 20, 2025
He also noted that the newly established task force, led by SEC Commissioner Hester Peirce—often called “Crypto Mom”—will play a crucial role in determining the agency’s future approach to crypto regulation.
“The Ripple appeal is also most certainly next in line for dismissal. Why? Because the new SEC top brass has made it crystal clear that the SEC will never file another court pleading of any kind arguing that a digital asset is a security, at least not until the Crypto Mom’s Task Force has completed its mission,” he said.
The SEC’s retreat from high-profile crypto cases marks an unprecedented shift. Stark described these changes as a drastic departure from the agency’s previous enforcement policies, emphasizing that such reversals have never occurred.
The ongoing restructuring and legal challenges questioning the SEC’s administrative procedures further complicate the agency’s ability to maintain its current stance on digital assets.
XRP Price Movements Amid Legal Uncertainty
Meanwhile, XRP has experienced a significant price drop, falling 10.68% in a single day to $2.17. Despite this decline, its 24-hour trading volume surged 195.83% to $13.51 billion, indicating heightened market activity.
The uncertainty surrounding the SEC’s case appears to influence market sentiment, with investors closely monitoring regulatory developments.
Source: CoinMarketCap
The crypto industry is closely monitoring the outcome of the Ripple case as the SEC continues to scale back its enforcement efforts. If the appeal is indeed abandoned, it would represent a major victory for Ripple Labs and could influence future regulatory decisions in the cryptocurrency space.
Also Read: Big News: SEC Drops Major Crypto Probe Without Penalty, Creates Excitement Across XRP Community
