The U.S. Securities and Exchange Commission (SEC) is reportedly preparing to drop its lawsuit against Coinbase, a move that could be a turning point for the crypto industry. But if the SEC is backing off from Coinbase, what does that mean for Ripple?
Could the agency be rethinking its legal battles against crypto firms, or is there more to the story?
Fox Business reporter Eleanor Terrett explained that Ripple’s lawsuit is more complex than Coinbase’s. Unlike Coinbase, Ripple has already been ordered by Judge Analisa Torres to pay a $125 million penalty.
Judge Torres will oversee the case until August 7, 2025, to ensure the payment is made. Meanwhile, Terrett noted that while the SEC could drop its appeal at the Second Circuit, it would still need to resolve the penalty ruling in district court. Any reduction or removal of the penalty would require Judge Torres’s approval.
With no clear precedent for this, uncertainty remains. As one legal source told Terrett, “We are in uncharted territory right now.”
A new update suggests the SEC is set to dismiss its lawsuit against Coinbase, pending approval from its commissioners. If finalized, this could be a turning point for crypto regulation.
Coinbase’s Chief Legal Officer shared that the SEC will soon vote on the deal. If approved, it wouldn’t just clear Coinbase—it could also set an example for other crypto firms facing legal battles with the SEC.
Many in the XRP community believe Ripple’s lawsuit may be nearing its end. Their optimism comes after the SEC recently signaled openness to XRP exchange-traded funds (ETFs), which some see as a sign that the case is no longer a top priority.
Bloomberg analyst James Seyffart noted that under its previous leadership, the SEC would have likely rejected an XRP ETF – just as it did for Solana in December. He believes this shift slightly improves the chances of approval. Similarly, Nate Geraci, co-founder of the ETF Institute, pointed out that the SEC’s recognition of XRP ETFs could influence its case against Ripple.
Ripple’s Chief Legal Officer, Stuart Alderoty, also expects a resolution soon, citing the SEC’s acknowledgment of XRP ETF filings. Legal sources say the SEC is focusing on cases with more urgent deadlines, like its lawsuit against Kraken, which must be addressed by March 31, 2025. This could push Ripple’s case lower on the SEC’s priority list.
However, if the SEC’s decision on Coinbase sets a new regulatory standard, it could open the door for Ripple to negotiate its own settlement.
Coinbase’s breakthrough could be the first domino to fall—if Ripple is next, the implications for crypto could be massive.
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