Ripple may have SEC lawsuit dropped in 2025 under new leadership

• SEC may drop lawsuits against crypto companies as early as 2025
• Trump administration strengthens pro-crypto stance
• Disappearance of Ripple lawsuit records raises speculation

Ripple Labs’ chief legal officer Stuart Alderoty expressed confidence that the potential change in leadership at the U.S. Securities and Exchange Commission (SEC) could usher in a new direction for the cryptocurrency industry. During an XRP community event in January 2025, he stated that if Paul Atkins is confirmed as SEC chairman, there is a real chance that the commission will drop civil lawsuits against crypto companies that are not involved in fraud, but rather in disputes over asset registration. He argued that the SEC’s current approach of imposing penalties is not the ideal strategy for regulating the industry and reinforced his expectation that the Ripple case could be voluntarily dismissed by the end of 2025.

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— RippleX (@RippleXDev) January 28, 2025

The dispute between Ripple and the SEC has been going on since December 2020, when the commission sued the company on charges that the sale of XRP tokens had been conducted as an unregistered securities offering. In August 2024, a federal court ruled that Ripple should pay more than $125 million, prompting both the SEC and the company to appeal the decision. The case involves fundamental questions about the classification of cryptocurrencies in the United States and has been closely followed by the market, which is waiting for greater regulatory clarity.

Alderoty noted that Donald Trump’s administration has taken a more pro-crypto approach, citing initiatives such as the creation of a task force focused on regulating digital assets and the launch of a task force within the SEC to address issues related to the sector. This change in stance has been welcomed by crypto companies, who expect more predictable and less aggressive regulation. Ripple CEO Brad Garlinghouse was also optimistic, mentioning that, as a direct result of the 2024 presidential election, 75% of the company’s new hires are expected to be in the United States.

Atkins’ confirmation as SEC chairman is still subject to Senate approval, but if that happens, the Republican-dominated Congress could move forward with a bill aimed at structuring the crypto market. Alderoty said there is a more favorable legislative environment and mentioned that a bill on the sector could be passed by the end of 2025. Ripple has been active in the political sphere, having contributed $45 million to a political action committee that supported candidates aligned with a more favorable view of cryptocurrencies.

Beyond the political scene, the relationship between Ripple's top executives and Donald Trump has also drawn attention. Both Alderoty and Garlinghouse have attended events hosted by the former president, including a dinner at his Mar-a-Lago residence and inauguration ceremonies in Washington. Ripple, in turn, made a $5 million donation in XRP to Trump's inaugural fund, while Alderoty has personally contributed more than $300 to fundraising committees linked to the Republican campaign.

Another factor that has fueled speculation is the disappearance of records about Ripple's lawsuit from the SEC website, raising doubts about a possible withdrawal of the case. Although the commission has not issued an official statement about the reason for this removal, the event has generated discussions in the market about the possibility of a faster-than-expected outcome. If the new SEC leadership opts for a more conciliatory approach, the closure of the case could bring greater regulatory stability to the sector and positively impact the price of XRP.