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- Jul 25, 2025 04:22 UTC
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Ripple vs SEC or Ripple vs XRP Holders? A Question No One Saw Coming
Ripple CEO says lawsuit is “behind them,” but the legal battle with SEC continues amid political donation controversies.
Former SEC lawyer clarifies lawsuit filed under Trump’s Jay Clayton, not current SEC Chair Gary Gensler.
The Ripple vs SEC lawsuit has taken center stage once again, this time not in court, but on X (formerly Twitter). Although Ripple CEO Brad Garlinghouse recently announced that the case is “behind them,” the legal battle is still not over on paper.
Political Ties Spark Controversy
What’s stirring even more chatter is a new round of political allegations around Ripple’s involvement in the 2024 U.S. presidential election. A user on Twitter recently claimed that Ripple and its top executives largely supported Vice President Kamala Harris during the election, while avoiding support for Donald Trump.
The donations have led to division within the XRP community. Many users are now questioning Ripple’s political stance, especially since a significant portion of the XRP fanbase is believed to support Trump.
Some online posts hinted that the XRP community may have been unaware of the scale of these political donations and claimed that XRP holders should consider exiting around the $3.50 mark if Bitcoin rises beyond $125,000.
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Former SEC Lawyer Defends Timeline
Amid all the political back-and-forth, former SEC lawyer Marc Fagel stepped in to correct the record about the origins of the Ripple lawsuit. He reminded users that the SEC’s case against Ripple was filed under the Trump administration, led by former SEC Chair Jay Clayton, not Gary Gensler.
“Basic facts, sorry,” Fagel posted on Twitter. “This case was investigated and filed before Gensler was even appointed. Unless he had a time machine, Gensler didn’t initiate this.”
When asked why Clayton chose to sue Ripple on his last day in office, Fagel explained that the decision had actually been made weeks earlier. Clayton likely voted before leaving to prevent delays that could have stalled the case for months while a new SEC chairman was confirmed. Gensler didn’t take over the role until nearly five months later.
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FAQs
No, despite public claims, the Ripple vs SEC case is still ongoing and not fully resolved legally.
The SEC alleges Ripple sold XRP as an unregistered security, violating federal securities laws.
Yes 
No 
