The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has entered a new phase of speculation, following a closed-door meeting held by the SEC on February 27, 2025. This has fueled rumors that the SEC may be preparing to dismiss the lawsuit against Ripple, a case that has drawn significant attention within the crypto community. Given recent developments, including the SEC’s decision to drop similar cases against major crypto firms like Coinbase, Uniswap, and Robinhood, many are now questioning whether Ripple might be next.

The Ripple lawsuit dates back to December 2020 when the SEC accused the company of illegally selling XRP as an unregistered security. The case has been ongoing for over three years, but recent rulings have shifted the balance in favor of Ripple. In 2023, Judge Analisa Torres ruled that XRP itself is not a security, a key decision that weakened the SEC’s position significantly. The ruling was a significant blow to the SEC’s case, which had initially claimed that Ripple’s sale of XRP violated U.S. securities law.

On February 27, the SEC held a meeting where legal matters and potential settlements were discussed. While the specifics of the meeting remain confidential, the timing has led many to believe that Ripple’s case could have been a part of the conversation. Some legal experts remain skeptical, like former SEC attorney Marc Fagel, who downplays the significance of the meeting. However, pro-XRP lawyer Bill Morgan expressed optimism, stating that Ripple now holds the advantage in the case.

Political pressure on the SEC is also mounting. Senator Cynthia Lummis, a staunch advocate for crypto regulation, has openly criticized the SEC’s approach to digital assets. She argued that most digital assets, including XRP, are not securities under the Howey Test, which judges whether something qualifies as a security. This aligns with Judge Torres’ ruling and has further bolstered Ripple’s case. Lummis and other lawmakers are pushing back against the SEC’s aggressive stance on crypto regulation, which could pressure the agency to reconsider its ongoing legal battles.

The legal landscape surrounding Ripple is expected to evolve quickly. April 16, 2025, marks a crucial deadline when Ripple must respond to the SEC’s appeal. If the SEC decides to withdraw its case before then, the lawsuit could be dismissed, bringing an end to a years-long legal fight and allowing Ripple to focus on its future growth. Should this happen, it would likely be a massive win for Ripple and the broader crypto market, as it could signal a shift in how cryptocurrencies are regulated in the U.S.

For XRP, the outcome of this case is particularly important. As of now, XRP is trading at $2.03, reflecting an 8.19% decline in recent days. Despite the drop, many analysts believe that if the SEC withdraws the case, XRP could see significant upward momentum, potentially reaching $3.20. The end of the lawsuit could also pave the way for an XRP exchange-traded fund (ETF), which would likely increase demand for the token and drive its price higher.

In conclusion, while the SEC’s decision to continue or drop the lawsuit remains uncertain, the closed-door meeting and growing political pressure suggest that the agency may be reconsidering its stance. If the SEC decides to withdraw, it could be a pivotal moment for Ripple and the entire cryptocurrency market. Investors are closely watching for updates, as the future of XRP and the broader regulatory landscape hangs in the balance.