The legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), which began in 2020, continues to evolve. As 2025 unfolds, Ripple remains in the crosshairs of the SEC, which has recently doubled down on its appeal regarding a 2023 ruling that initially favored the company. The fight over whether XRP should be classified as a security continues to dominate headlines, with significant developments taking place in January.
SEC Appeals Ruling from 2023
In January 2025, the SEC filed its first opening brief in its appeal against the court’s August 2023 ruling. This ruling found that Ripple’s programmatic sales of XRP to retail clients through centralized exchanges did not violate securities laws. The SEC continues to argue that XRP should be classified as a security, asserting that the Howey Test for investment contracts applies to the cryptocurrency, regardless of how it is bought or sold.
In response to the SEC’s move, Ripple requested an extension, asking for a due date of April 16, 2025, to submit its brief. The legal battle is now expected to extend well into 2025, keeping the crypto industry and legal experts on edge.
Better Markets Takes the SEC’s Side
On January 22, 2025, another notable development emerged when Better Markets, a non-profit organization, filed a brief siding with the SEC. The group argued that XRP should be categorized as a security, regardless of how it is traded—whether directly from Ripple or indirectly on secondary trading platforms. According to Better Markets, XRP tokens sold by Ripple are investment contracts, fulfilling the requirements of the Howey Test and thus should be treated as securities.
This perspective contradicts the views of many in the crypto industry, who support Ripple’s stance that XRP is not a security and should be treated as a commodity. The Better Markets brief is likely to add complexity to the case, as it strengthens the SEC’s position.
Gary Gensler’s Departure: What It Means for Ripple
A significant change in leadership occurred on January 20, 2025, when Gary Gensler resigned as Chairman of the SEC. Gensler, who was a major antagonist to the crypto industry, was replaced by Mark Uyeda, a pro-crypto figure. This change has raised hopes within the XRP community that the SEC may reconsider its aggressive stance against Ripple.
John Deaton, a prominent American attorney and supporter of Ripple, outlined three possible scenarios for the case following Gensler’s departure:
Ripple executives have shown willingness to pay the $125 million fine, especially considering that it is a small fraction of the original $2 billion the SEC initially demanded. This openness to settle could speed up the legal process and lead to a more amicable resolution.
January’s Ripple Outlook: What’s Next?
As the Ripple v. SEC case continues, January 2025 brought important updates that could influence the outcome. Ripple remains resilient, actively defending its position, while the SEC is determined to enforce its view on the status of XRP. With the departure of Gary Gensler and the rise of Mark Uyeda, the situation could shift in Ripple’s favor, but much remains uncertain.
Conclusion: The Road Ahead for Ripple and XRP
The legal battle between Ripple and the SEC has been a long and complex one, and it shows no signs of slowing down. As the SEC presses its appeal and Ripple fights to defend its position, both sides will continue to push for a favorable resolution.
With the SEC’s leadership change and Better Markets supporting the SEC’s position, the case is likely to experience new developments. Investors and crypto enthusiasts will need to stay tuned to see how this high-stakes legal battle unfolds and whether Ripple can finally reach a resolution that clears the path for XRP to flourish without regulatory hurdles.
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