- SEC’s closed-door meeting sparks speculation on dropping Ripple’s lawsuit.
- XRP faces key support at $1.65 after breaking below the $2.20 level.
- Ripple’s April 16 deadline may determine the SEC’s next legal move.
The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a new turn. A closed-door SEC meeting held on February 27, 2025, has triggered speculation that the agency might be considering dropping its case against Ripple. The ongoing lawsuit, which began in December 2020, has been a key topic within the crypto community, influencing market sentiment around XRP.
Given the SEC’s decision to drop cases against firms like Coinbase, Uniswap, and Robinhood, analysts are now questioning whether Ripple will benefit from a similar outcome.
Ripple Gains Momentum in Legal Battle
The lawsuit revolves around the SEC’s claim that Ripple illegally sold XRP as an unregistered security. However, a major ruling in 2023 weakened the SEC’s argument when Judge Analisa Torres determined that XRP itself does not qualify as a security.
This decision marked a significant victory for Ripple, shifting the momentum in its favor. Since then, Ripple has continued to build its defense, with growing support from lawmakers and the crypto industry.
SEC’s Meeting Raises Questions
On February 27, the SEC reportedly discussed legal matters and potential settlements in a private session. While the specifics remain undisclosed, the timing has fueled speculation that Ripple’s case was part of the discussions.
Besides legal perspectives, political pressure on the SEC is increasing. Senator Cynthia Lummis has openly criticized the agency’s regulatory stance, arguing that most cryptocurrencies, including XRP, do not meet the Howey Test criteria for securities.
Her position aligns with Judge Torres’ ruling, further strengthening Ripple’s case. Lawmakers advocating for clearer regulations may influence the SEC’s decision on whether to continue pursuing its legal battle against Ripple.
Key Dates and Market Impact
Ripple faces a crucial deadline on April 16, 2025, when it must respond to the SEC’s appeal. If the SEC withdraws its case before this date, it would mark the end of a prolonged legal fight and potentially redefine how cryptocurrencies are regulated in the U.S. Such a decision could also bolster XRP’s market position.
As of press time, XRP is trading at $2.17 with a 24-hour trading volume of $4.71 billion. The cryptocurrency has gained 9.04% in the last 24 hours but remains down 15.83% over the past week.
Analyst Ali Martinez notes that XRP broke below a key support level of $2.20. If the decline continues, XRP may find strong support near $1.65, which could serve as a potential rebound zone.
