The long-running legal standoff between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs is inching toward a pivotal resolution, with critical decisions expected to be made at a closed SEC meeting today, May 8.
The developments may reshape XRP’s regulatory standing and reignite institutional demand for the asset. The meeting, confirmed on the SEC’s public events calendar, includes deliberations on enforcement and settlement matters.
With a quorum of Commissioners and Chair Paul Atkins in attendance, the agency is positioned to formally vote on several key proposals, including “institution and settlement of injunctive actions.”
Notably, the current situation of the Ripple lawsuit falls under this category as the commission might vote to lift the injunction that restricts institutional XRP sales, reducing Ripple’s $125 million penalty, and withdrawing the appeal of the 2023 Programmatic Sales ruling by Judge Analisa Torres.
Momentum Tilts in Ripple’s Favor as Joint Settlement Nears
According to recent court filings, both Ripple and the SEC jointly requested a pause in the agency’s appeal, citing active settlement discussions. Legal observers interpret this as a clear indication that Commission staff have already agreed to lift the injunction and reduce financial penalties.
Perhaps more importantly, Ripple has publicly confirmed that the SEC intends to formally drop its appeal, a critical move that would preserve Judge Torres’ ruling that secondary XRP sales are not securities transactions, a decision widely celebrated as a landmark win for the crypto industry.
Still, a formal Commission vote is required to finalize these outcomes. If the vote succeeds, XRP could regain full institutional clearance, unlocking a broader range of investment products and custody services.
A Political Undertone: The Crypto Shift in Washington
The political backdrop cannot be ignored. Current SEC leadership, including Chair Atkins, Hester Peirce, and Mark Uyeda, are known advocates for pro-crypto policy reform, and their views align closely with the Trump administration’s stance on digital innovation.
This ideological shift became more visible after the SEC’s abrupt dismissal of its case against Coinbase (COIN) in February 2025, another clear signal that the Commission may be stepping back from aggressive crypto enforcement as regulatory clarity emerges in Congress.
Also Read: BlackRock Clients Interested in XRP? Crypto Commentator Says Expect Big News Soon
XRP Price Stagnates, But Institutional Doors May Reopen
Despite these positive legal developments, XRP continues to trade significantly below its January peak of $3.3999 and well under its all-time high of $3.5505. At the time of writing, XRP was trading at $2.17, representing a 1.86% increase in the last 24 hours.
XRP Daily Trading Chart | Source: Coinmarketcap
The asset’s muted price action reflects broader market caution amid regulatory uncertainty and limited institutional engagement.
However, if the May 8 vote clears Ripple’s legal hurdles, analysts say XRP could see a resurgence in institutional volume, particularly from asset managers exploring XRP-linked exchange-traded products (ETPs) and cross-border payment channels.
Financial institutions are already exploring Ripple’s RLUSD stablecoin, and the company’s acquisition of prime brokerage Hidden Road adds more weight to its push into structured finance—an area where legal clarity around XRP could prove game-changing.
John Reed Stark: “Stick a Fork in SEC Crypto-Enforcement, It’s Done”
The waning momentum behind SEC enforcement was underscored by comments from John Reed Stark, a former Chief of the SEC Office of Internet Enforcement. In a striking post on X (formerly Twitter), Stark cited remarks by the newly appointed Chief of the SEC’s Cyber and Emerging Technologies Unit, previously known as the Crypto Unit.
“BREAKING: The new Chief of the SEC Cyber Unit just made their first public remarks… Stick a fork in SEC crypto-enforcement—it’s done.”
Stark elaborated further on May 4, claiming the SEC’s oversight over crypto has become practically non-existent:
“There’s no audits, no inspections, no examinations, no net capital requirements, no cybersecurity oversight—nothing.”
Such public criticism from a former insider paints a picture of an agency retreating from its once-aggressive regulatory posture, possibly due to court losses, political pressure, and shifting market dynamics.
Final Thoughts
For now, all eyes are on the SEC’s Thursday vote. If Commissioners greenlight the proposals, Ripple will emerge from the case not just with regulatory clarity, but with strategic momentum to scale XRP’s role in the next phase of global finance.
A lifted injunction and an abandoned appeal would validate XRP as a legally distinct asset, one free to power cross-border liquidity, support bank-grade financial products, and possibly regain favor among ETF issuers and institutional custodians.
Also Read: Ripple CTO: Institutional XRP Adoption Will Pave the Way for Massive Breakthrough
