The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been ongoing for years, but has reached a critical point since the ruling of Judge Analisa Torres in July 2023 – and the subsequent appeals. With Mark Uyeda as the new SEC chairman, hope is growing within the XRP community that the agency will withdraw its appeal against Ripple and close the case. What is driving this call, and what could happen?
Since the SEC appealed against Torres’ ruling on October 2, 2024 – that XRP’s programmatic sales (on exchanges) are not securities, but institutional ones are – the XRP community has been in revolt. X-users like Tanner lead the group:
“The prosecution is unnecessary; the judge has already spoken.”
The ruling determined that public XRP sales do not fall under the Howey test (not an investment contract), while institutional sales cost Ripple $125 million – much less than the $2 billion demanded by the SEC.
The community speculates that Ripple’s request for an extension of its cross-appeal brief until April 16, 2025, is a strategic gamble on Uyeda’s leadership. Uyeda, who has been acting chairman since January 2025, previously criticized the SEC’s “regulation by enforcement” (February 2023 speech). His crypto-friendly attitude – and Trump’s pro-crypto agenda – fuels hope for a pragmatic solution. Some, like John Deaton on X, suggest a compromise: both parties drop appeals, revise the $125M fine, and close the case.
Uyeda’s appointment marks a shift. Under Gary Gensler (until January 2025), the SEC was aggressive: 100+ crypto cases, including Ripple (December 2020: $1.3B unauthorized sale). But recent moves – withdrawal of charges against Ripple CEO Brad Garlinghouse and Chris Larsen (October 2023), closure of the Coinbase case (February 2025) – suggest a softening. Uyeda’s vision, backed by Trump’s Crypto Strategic Reserve, in which XRP was named as one of the altcoins, hints at a more positive attitude towards Ripple Labs. However, the XRP community insists:
“If Uyeda wants to correct missteps, withdraw the appeal.”
This would restore confidence and set a precedent – XRP as a non-security could protect altcoins. However, the appeal is a sticking point: the SEC claims that Torres misapplied the Howey test to retail sales, a position supported by Better Markets (January 2025 letter).
However, Ripple remains proactive. Garlinghouse spoke with Trump about XRP in the reserve (X-post, January 20) and is working with legislators and blockchain groups for clear rules. Ripple’s RLUSD stablecoin and OCC’s custody rule (March 5) enhance XRP’s institutional utility.
Currently, Uyeda faces a choice: drop the appeal, strike a deal, or push through. The community’s call – and Ripple’s lobbying – pushes for closure. A withdrawal boosts XRP and crypto regulation; continuation extends uncertainty. The ball is in the SEC’s court!
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