The U.S. District Court for the Northern District of California ruled in Ripple's favor last week, rejecting claims that the company illegally sold unregistered securities. The order cleared Ripple and its executives from accusations centered around the sale of XRP tokens without proper registration and oversight.

The Securities and Exchange Commission's (SEC) position is that the sale of those XRP tokens required the same registration and regulatory scrutiny as traditional securities like stocks or bonds.

This ruling has fueled rumors the case could be dismissed as early as Spring 2025, and came just days after Ripple CEO Brad Garlinghouse said he could see "light at the end of the tunnel" in the case.

The trial, scheduled for January 21, 2025, has been delayed pending the resolution of all appeals.

XRP Rally After Ledger Upgrade

XRP's meteoric rise peaked this week, breaching $1.16 and reaching valuations unseen since spring 2021, according to CoinGecko data. The digital asset's 33% weekly surge and 150% monthly advance eclipse broader market performance, catapulting its market capitalization to $66 billion and cementing its position as the sixth-largest cryptocurrency ahead of Dogecoin.

XRP's momentum can also be partly attributed to updates on the XRP Ledger. A consensus was reached on the implementation of XLS-66D, an architectural shift toward institutional-grade infrastructure introducing sophisticated tokenization frameworks and expanded financial instruments. The protocol overhaul delivers uncollateralized lending capabilities alongside enhanced regulatory compliance architecture.

The upgrade's impact is reflected in the derivatives markets, where futures open interest reached $2.13 billion on November 18—a 77% surge in 24 hours.

Talks Between Garlinghouse and Trump?

The expectation of fundamental shifts under the incoming Trump administration also boosted XRP prices. The President-elect's pledge to dismiss SEC Chairman Gary Gensler upon inauguration has resonated throughout the industry, while eighteen states—Texas, Wyoming, and Montana among them—are challenging Gensler's authority through legal action, citing regulatory overreach.

Market speculation intensified following rumors of dialogue between Ripple CEO Brad Garlinghouse and President-elect Trump. Addressing industry prospects on Fox Business, Garlinghouse noted: "The crypto industry has embraced Trump; Trump has embraced the crypto industry. He sees the opportunity, innovation, and entrepreneurship ahead."

The Timeline

  • November 12, 2024: A federal court ruled in favor of Ripple, dismissing the SEC's claims of the illegal sale of unregistered XRP tokens.
Ripple: SEC Files Last-Minute Appeal, $1M XRP Donation to Harris Campaign
XRP prices rose as the SEC missed its October 16 deadline. Ripple co-founder Chris Larsen made a significant XRP donation to the Kamala Harris campaign.
Observing moneytech and Web3Mathilde Adam
  • October 24, 2024: Ripple's own deadline to provide Form C.
  • October 16, 2024: The SEC missed its deadline and failed to provide Form C detailing the appeal.
  • October 10, 2024: Ripple filed its notice of cross-appeal.
  • October 2, 2024: The SEC filed its notice of appeal.
Ripple Faces SEC Appeal Again Amid Global Expansion and Stablecoin Launch
While Ripple pushes forward with its ambitious expansion plans in Dubai and Brazil, and prepares for the launch of its RLUSD stablecoin, the blockchain giant now must prepare to counter the U.S. agency’s appeal.
Observing moneytech and Web3Mathilde Adam
  • August 7, 2024: Judge Torres ordered Ripple to pay $125 million in civil penalty.
SEC vs. Ripple: End in Sight as Parties Argue Over Remedies
More legal tussling as the blockchain company claims that the so-called Fox Declaration should have been classified as expert testimony, not “standard summary evidence,” as the SEC claims.
Observing moneytech and cryptoMathilde Adam
  • May 6, 2024: SEC filed its remedies reply brief under seal, addressing Ripple's motion to strike the Fox Declaration.
  • May 2, 2024: Ripple filed its reply brief, challenging the SEC's classification of Andrea Fox's testimony.
  • April 29, 2024: SEC countered Ripple's objections, asserting the Fox Declaration as summary evidence for calculating disgorgement.
Ripple Opposes SEC’s Proposed $2 Billion Fine in XRP Lawsuit
The firm calls the penalty “draconian” and unjustified, arguing that a fine closer to $10 million would be more appropriate.
Observing moneytech and cryptoMathilde Adam
  • March 22 to May 20, 2024: Proposed timeframe for submissions and redactions for the SEC and Ripple.
  • April 22, 2024: Ripple filed its opposition against the SEC's fine request and a motion to strike expert testimonies due to "sandbagging."
SEC Demands Nearly $2 Billion Penalty From Ripple Labs
Ripple faces a hefty potential financial penalty following a new proposal from the SEC. The firm maintains the sales were legal and plans to contest the charges in April.
Observing moneytech and cryptoMathilde Adam
  • March 25, 2024: The SEC filed a proposal for judgment, demanding nearly $2 billion in penalties against Ripple.
  • October 23, 2023: The SEC voluntarily dismissed charges against the individual defendants (Garlinghouse & Larsen) with Judge Torres' approval.
SEC Loses Motion for Appeal Against Preliminary Ripple Judgement
In another victory for Ripple, a federal judge has dismissed the SEC’s appeal request, paving the way for a final trial in April. Ripple has also recently secured a Singapore license, solidifying its commitment to the Asia Pacific expansion.
Observing moneytech and cryptoMathilde Adam
  • October 4, 2023: Ripple's Singapore subsidiary obtained its license to operate in the country. The trading volume of XRP nearly doubled.
  • October 3, 2023: Judge Torres dismissed the SEC's request for an interlocutory appeal, as it does not meet the exceptional circumstances necessary.
Ripple Set to Fight SEC’s Appeal Against July’s Court Ruling
The Ripple vs SEC case is sadly still far from being settled. In mid-August the judge granted the SEC’s request to file an interlocutory appeal, although Ripple now claims the regulator has failed to satisfy all the prerequisites necessary to justify this.
Observing moneytech and cryptoMathilde Adam
  • September 8, 2023: The SEC's deadline to file its response.
  • September 1, 2023: Ripple filed its response to the appeal and stated that the SEC lacked any legal grounds for the appeal's success or relevance.
  • August 18, 2023: Court deadline for the SEC to file its appeal.
  • August 15, 2023: Judge Torres granted the SEC's request to file an interlocutory appeal. She also filed a notice of appearance for an investment banker declarant.
Ripple Secures a Partial Win Against the SEC
A U.S. judge ruled yesterday that Ripple’s XRP token is not a security for programmatic sales. Several exchanges are planning to relist XRP on their platforms following the ruling, and many major crypto prices saw a boost.
Observing moneytech and cryptoMathilde Adam
  • July 13, 2023: Judge Torres ruled that XRP is not a security in the case of programmatic sales but that the token does meet the definition of security for sales made to institutional investors.
Ripple vs SEC: Unsealing the Hinman Speech
SEC lawsuits against Coinbase and Binance, the upcoming unveiling of crucial documents, House hearings on the future of crypto: the end might be near for Ripple in its ongoing legal dispute with the SEC.
Observing moneytech and cryptoMathilde Adam
  • June 13, 2023: The Hinman documents were expected to be released.
  • June 5, 2023: The SEC removed Hinman's biography from its website.
  • May 19, 2023: Reports emerged that the SEC and Ripple filed a joint letter requesting an extension to submit the Hinman speech.
  • May 16, 2023: Judge Torres rejected the SEC's motion to keep the Hinman speech sealed.
SEC vs Ripple: Ruling Expected Anytime Soon
The protracted legal dispute between Ripple, a California-based tech company, and the U.S. SEC has lasted for more than 28 months, prompting widespread speculation regarding the date of the final ruling. Ripple supporters suggest that the verdict may be announced by the end of April.
Observing moneytech and cryptoMathilde Adam
  • April 18, 2023: SEC Chair Gary Gensler testified at a congressional hearing without revealing whether ether was considered a security.
  • April 16, 2o23: John E. Deaton shared a 2018 video featuring Tim Draper and Gary Gensler discussing potential lawsuits and the influence on financial regulators.
  • March 6, 2023: Judge Torres issued an initial ruling excluding expert testimony from the summary judgment process in Ripple's legal battle with the SEC.
Ripple vs SEC Updates
The ongoing dispute between Ripple and SEC is closely followed by crypto participants and investors alike, with many anticipating the outcome’s potential impact on the market.
Observing moneytech and cryptoObservers
  • March 3, 2023: Ripple filed a Supreme Court letter to Judge Torres.
  • January 2023: Multiple organizations, including Coinbase, submitted amicus briefs in support of Ripple.
  • November 30, 2022: SEC and Ripple submitted final submissions to the summary judgment motions.
  • November 7, 2022: The LBRY blockchain lost a similar case against the SEC, resulting in a decline in XRP's value.
  • September 17, 2022: Both the SEC and Ripple filed motions for summary judgment.
  • January 24, 2022: Judge Netburn granted the SEC until February 17 to appeal the decision regarding sensitive government documents in the case.
  • August 31, 2021: Ripple filed a motion requesting the SEC disclose its internal crypto trading policies.
  • June 14, 2021: The SEC's deadline for disclosing internal crypto trading policies was extended.
  • April 13, 2021: SEC Commissioner Hester M. Peirce published the Token Safe Harbor Proposal 2.0.
  • March 22, 2021: Judge Netburn distinguished XRP from BTC and ETH in terms of currency value and utility.
  • March 8, 2021: The SEC requested an immediate hearing in response to Ripple's arguments.
  • March 3, 2021: XRP holders led by John E. Deaton contested the SEC's lawsuit, arguing that XRP is not a security.
  • December 21, 2020: The SEC filed a lawsuit against Ripple Labs, Garlinghouse, and Larsen.
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