Ripple Must Wait Until May for Peace with SEC, According to Lawyers

XRP is planned by President Trump in the USA as part of a state crypto reserve, and Ripple is happy about that. But the ongoing appeal process with the SEC is disruptive. Lawyers have a feeling what will happen next with XRP.

Crypto investors are watching the USA every day, where President Donald Trump is implementing a U-turn in his handling of Bitcoin and Co. Ripple (XRP) is benefiting particularly clearly from the rethinking in the White House. The altcoin, often thought to be dead, has made a spectacular comeback with a gain of around 300 percent since Trump’s election.

During the term of office of predecessor Joe Biden, Ripple and XRP were mainly in the spotlight because of a legal dispute with the SEC. But now, according to Trump , XRP is even one of the selected cryptocurrencies that will complement a strategic Bitcoin reserve in the USA. But there is a problem.

Officially, Ripple’s legal difficulties with XRP are still not over. The US Securities and Exchange Commission (SEC) has already settled a handful of lawsuits with the crypto industry, with Coinbase and Kraken being two prominent beneficiaries.

But Ripple has not yet received a peace offer from the SEC; the SEC confirmed that it would continue an appeal process shortly before the change of power in the White House. And it is precisely this procedural status that makes it difficult for the SEC and Ripple to finally put the XRP case to rest, as lawyer Jeremy Hogan explains on X.

That is why Ripple, XRP and SEC can be compared to a couple

This is because the most recent ruling on Ripple and XRP from August 2024 still contains an “injunction”. Opponents cannot normally simply overturn this, as Hogan’s professional colleague James “MetaLawMan” also emphasizes. Hogan uses the simple comparison of a couple who get back together. If a court has ordered a ban on contact, this still applies and can only be lifted with sophisticated justification, says Hogan. Ripple and the SEC must therefore agree exactly how to convince the appeals court to overturn the previous injunction on XRP.

In the case of a couple in love, for example, the girlfriend could appear before the court while pregnant, emotionally describe the reconciliation and announce a wedding, suggests Hogan. In Ripple’s case, the financial aspect of the previous order, which provides for fines of 125 million US dollars, is not the obstacle.

It is the infamous Howey Test that the court applied to XRP, and which prohibits Ripple from directly selling its cryptocurrency according to the previous order. The SEC must find an argument here that allows for a change of course, says Hogan. His prediction: In April or May, Ripple and the SEC will ask the appeals court to end the case because of XRP, knowing that the judge, who is politically independent, has the final say.

Conclusion: XRP and Ripple cannot get rid of SEC litigation risks

The latest XRP rally seems to ignore the legal risks that have been accompanying Ripple for a good four years through the SEC. People are looking more towards possible XRP ETFs and a hoped-for stimulus from the planned crypto reserve of the USA.

But before it can get that far, the hurdle of the appeals court must be overcome. The legal experts are aware of the procedural pitfalls there and advise patience. Because even if Ripple CEO Brad Garlinghouse is considered one of President Donald Trump’s crypto friends – for XRP, even the two cannot undermine the independence of the courts.

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(Featured image by Alesia Kozik via Pexels)

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