In the wake of a series of dropped investigations against prominent crypto companies, legal experts are weighing in on what these developments could mean for Ripple Labs’ long-standing dispute with the US Securities and Exchange Commission (SEC).
On Monday, Robinhood confirmed it had received a letter from the SEC stating the closure of the regulator’s investigation into its crypto operations—a probe that originally stemmed from a Wells Notice the company received in May 2024. Coinbase Chief Executive Brian Armstrong also revealed last week that a similar SEC investigation into the exchange had been terminated with no further action. In addition, the NFT marketplace OpenSea previously saw its own SEC probe dismissed.
These terminations follow a growing trend: The SEC has been systematically closing or dismissing legal actions against crypto-focused entities—a stark departure from the more combative approach under former SEC Chair Gary Gensler. Notably, Gensler resigned on January 20, 2025, the day Donald Trump was inaugurated as President of the United States. Under interim SEC head Mark Uyeda, the agency has assembled a specialized crypto task force overseen by Commissioner Hester Peirce to clarify digital asset regulations.
What Is Delaying The Ripple Vs. SEC Case Resolution?
James “MetaLawMan” Murphy of Ludlow Street Advisors, LLC, took to social media platform X to highlight the significance of these recent SEC moves: “SEC closes investigation of Robinhood crypto business after previously issuing Wells Notice. The post-Gensler SEC appears to finally recognize that most crypto tokens are not securities. We should see dismissals of cases against Gemini, Kraken, Binance, Ripple & others.”
Meanwhile, he also highlighted why the Ripple case could last a tad longer to get a case resolution in contrast to the other firms. “The only reason I list Ripple last is the complexity involved in negotiating a resolution. Ripple is the only live crypto case with a final judgment in place. So, the SEC & Ripple lawyers must negotiate what to do about the judgment & the money escrowed for that judgment. That takes time,” Murphy stated via X.
Meanwhile, pro-XRP attorney Jeremy Hogan recently commented on how rapidly the SEC’s stance has shifted in certain cases, predicting that the SEC could drop the Ripple case even more the new SEC chair Paul Atkins is sworn into office.
“The Coinbase Case was Dismissed WITH Prejudice – meaning it cannot be refiled later; not even a settlement agreement with some minor concessions! I guess this SEC is not waiting for Atkins to be confirmed before making big crypto moves. Ripple [is waiting in line],” Hogan wrote via X.
Overall, Murphy’s statement underscores that while other cases may be swiftly dismissed, Ripple’s situation is more complicated due to the existing court decision. To resolve those details, both the SEC and Ripple’s legal team must agree on how to handle the judgment, a process that requires time.
At press time, XRP traded at $2.2191.
