The long-running crypto battle between Ripple and the Securities and Exchange Commission (SEC) has been a focal point within the crypto industry. The widely publicized lawsuit is continuously monitored by both retail and institutional investors who are curious about the future outlook of the coin.
While the case drags on, the SEC has dismissed several other high-profile crypto lawsuits and probes since the institution of a new SEC administration led by Mark Uyeda. However, the Ripple vs. SEC case still lingers or is assumed to be in limbo while the commission focuses on others.
This has led to frustration among the XRP community as members wonder why the delay since the case is arguably the most significant and enduring among others. In a surprising revelation though, Anthony Scaramucci, a former White House director of communications opined that the SEC has already dropped the SEC lawsuit.
Also Read: XRP Fails to Maintain Rally: Here is Why XRP Price is Crashing All of a Sudden
Ripple vs. SEC Lawsuit Done?
Scaramucci appeared on the Wolf of All Streets podcast on YouTube yesterday, hosted by Scott Melker. During the interview, they both talked about changes in the crypto industry since Trumps take over. They also discussed the President’s pro-crypto plans as well as crypto regulations in the industry.
Melker went on about the SEC’s new crypto stance in the industry and the list of cases that have been recently dropped including Gemini, Coinbase, Robinhood, Uniswap, and most recently, Consensys, the company behind the Metamask wallet.
However, Scaramucci interrupted, urging Melker to include Ripple on the list of already dismissed lawsuits. Melker answered in agreement saying “Yeah, that’s right.” Scaramucci’s interjection and suggestion imply that the SEC may have tossed the Ripple case.
While he didn’t present any empirical evidence for his claims, it immediately excited the XRP community who have been waiting for positive news regarding their favorite crypto project. Meanwhile, the SEC has not offered any official update regarding the lawsuit as the case remains in appeal.
Ripple Lawsuit More Complicated Than Others
In a previous tweet on X, prominent legal expert, Jeremy Hogan, shed light on the possible reasons behind the delayed resolution in the Ripple and SEC case. Hogan emphasized the complexity of the case stating that Judge Torres’s July 2023 ruling makes it difficult for the SEC to outrightly dismiss the lawsuit.
Recall that Judge Torres ruled that the programmatic sales of XRP do not constitute securities, however, declared the initial sales to institutional investors broke the law. Hence, Ripple was ordered to pay $125 million in civil penalties.
Moreover, Ripple was also banned from offering XRP to institutional investors without getting approval from the SEC. Hogan points to the ban on Ripple as the major reason why the SEC is yet to drop the case, adding that overturning the ruling might be difficult and could potentially extend the case until April 2025.
Will XRP Inclusion in Crypto Reserve Help its Case?
In a significant turn of events, President Trump announced on Sunday the crypto assets that could potentially be utilized in the strategic crypto reserve. Trump disclosed in a post on Truth Social that Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA), are the chosen projects.
The news spread like wildfire across the crypto market igniting bullish sentiment for a while. XRP surged by almost 30% to a peak of $2.95. However, the coin has shed most of the accumulated gains and is now trading around $2.35 at the time of writing.
With the inclusion of XRP in a strategic reserve, questions are rising about its potential impact on the Ripple-SEC lawsuit. Industry members have speculated that the consideration could mean a step back in enforcement for the blockchain company Ripple since it is only logical to include cryptocurrencies with regulatory clarity in the crypto basket.
While this is not yet clear, investors and global industry members are keenly observing to see how events unfold.
Also Read: Here is What Trump’s Crypto Reserve Means for the XRP Community
