The U.S. Securities and Exchange Commission (SEC) has abruptly withdrawn two key appeals, signaling a potential shift in its crypto enforcement strategy.
The move has intensified speculation about the fate of its ongoing legal battle with Ripple Labs. Market watchers believe the agency’s sudden policy changes could have major implications for XRP’s price and the broader crypto landscape.
What you'll learn 👉
SEC Withdraws Key Appeals
The SEC recently moved to dismiss its appeals regarding the classification of crypto firms as securities dealers.
The legal challenge, led by private fund associations and crypto industry groups, had already resulted in a federal court ruling that deemed the SEC’s regulatory expansion beyond its authority. The agency’s one-page dismissal notices provided no detailed reasoning, but an SEC spokesperson acknowledged concerns over market liquidity and taxpayer debt.
The SEC is pulling back from its aggressive crypto stance, according to legal expert John Reed Stark who points to a systematic scaling down of enforcement under acting Chair Mark Uyeda. The agency has stepped away from several major cases, including those targeting Coinbase and Binance.
The SEC’s Frantic and Unprecedented Rampage to Dismantle its Crypto-Enforcement Program Continues: This Time, Halting Two SEC Appeals Dead in Their Tracks (Buckle up XRP Army, the Ripple Appeal Has Got To Be Next on the SEC Chopping Block)
— John Reed Stark (@JohnReedStark) February 20, 2025
The U.S. Securities and Exchange… pic.twitter.com/y6cMnhVRoi
Moreover, the SEC’s decision to withdraw its appeals, according to Stark, shows a hesitancy to proceed with cases that might encounter legal obstacles. Besides, the SEC’s reversal of its appeals may affect the Ripple case, an issue that has influenced XRP’s regulatory outlook for a long time.
According to Stark, the new SEC leadership has not been very interested in promoting the idea that digital assets ought to be categorized as securities. It doesn’t seem likely that there will be any further enforcement actions because Commissioner Hester Peirce is in charge of a task group that is focused on crypto.
This development has fueled speculation that the SEC might drop its appeal against Ripple’s partial legal victory. Considering the agency’s prior hostile attitude against Ripple, a dismissal would be a major shift. Market players are keeping an eye on the issue in hopes of a conclusion that will affect XRP’s legal status and its performance in the market.
Market Reaction and XRP’s Price Movement
The uncertainty surrounding the SEC’s actions has already impacted XRP’s price. According to CoinGecko data, XRP trades at $2.31 at press time. This reflects a 10.38% gain in the past day. However, the token has seen a 10.48% decline over the past week.
The market seems stuck in wait-and-see mode as investors look for clearer direction from regulators. While the SEC’s softer approach might give XRP some breathing room for now, the bigger picture – including overall crypto market conditions – will probably have more say in where prices head next.
Read also: Can XDC Network Price Still Reach $3 in 2025?
Shifting Priorities at the SEC
In contrast to its prior strict approach, the SEC seems to be easing its position on crypto enforcement.
The agency is reexamining its approach to digital assets under Commissioner Uyeda’s oversight. Meanwhile, Commissioner Peirce’s team is working to create better guidelines for the industry.
In a telling move, the SEC has renamed its Crypto Unit to Cyber Unit and moved staff around – perhaps signaling less focus on courtroom battles and more on workable oversight.
Industry expert Stark noted how unusual this enforcement pullback is for the SEC. Once at the core of the agency’s war on crypto, the Ripple case could be the next to collapse.
Given that the SEC appears to be reconsidering its role in the digital asset market, these changes could result in a very different playing field for XRP and other cryptocurrencies soon.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
