Ripple’s XRP price experienced a significant spike on January 22, reaching £2.64 ($3.25) as speculation surrounding the potential dismissal of the years-long legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) gained momentum. The price increase comes just ahead of a pivotal SEC closed-door meeting scheduled for January 23 at 2 p.m. ET.
SEC’s Meeting Fuels Optimism in the Crypto Community
According to the SEC, the closed meeting will address critical issues, including the settlement of injunctive actions, resolution of litigation claims, and matters tied to enforcement proceedings. Investors and industry leaders are hopeful that the Ripple lawsuit, which began in 2020, may be nearing its conclusion.
The SEC initially sued Ripple for allegedly offering XRP as an unregistered security to raise funds, bypassing regulatory approval. The lawsuit is among 83 crypto-related enforcement actions initiated under former SEC Chair Gary Gensler, who was known for his aggressive stance against crypto firms.
The case has been a focal point in the crypto industry, with many viewing its outcome as a precedent for how digital assets are regulated in the U.S.
First SEC Meeting Under Pro-Crypto Leadership
This week’s meeting marks the first under Acting SEC Chair Mark Uyeda, a known pro-crypto advocate. Uyeda has recently called for reform in how cryptocurrencies are regulated, particularly regarding their classification as securities. Earlier this week, he introduced a crypto task force to reexamine enforcement policies.
In November 2024, Uyeda criticized the SEC’s approach to cryptocurrencies, stating, “The Commission’s war on crypto must end, including enforcement actions solely based on failure to register without allegations of fraud or harm. President Trump and the American electorate have sent a clear message.”
Uyeda’s stance suggests a possible shift in the SEC’s policies under the new administration, raising hopes for a more favorable regulatory environment for crypto businesses.
Industry Experts Share Mixed Opinions
While speculation about a settlement is high, some industry experts remain cautious. Former SEC attorney Marc Fagel shared on social media that a resolution might not be imminent, suggesting that a settlement could occur only after pro-crypto advocate Paul Atkins assumes the role of SEC Chair.
“This week’s meeting is routine,” Fagel noted. “Recommendations calendared weeks ago will likely be voted on. Those expecting monumental developments could be disappointed.”
FoxBusiness journalist Eleanor Terrett echoed Fagel’s sentiments, emphasizing that the meeting may not deliver a groundbreaking resolution. However, crypto expert John Deaton offered a more optimistic view, suggesting that Uyeda and Atkins could be working to dismiss the case.
Ripple’s Lawsuit: A Turning Point for Crypto Regulation
The Ripple lawsuit has drawn attention not only for its implications on XRP but also for the broader cryptocurrency industry. Many believe its resolution could set a legal precedent for how digital assets are regulated in the U.S.
As XRP prices reflect the community’s anticipation, the SEC’s meeting could signal a pivotal moment for the case. Whether the lawsuit reaches a resolution this week or in the coming months, its outcome will undoubtedly shape the future of crypto regulation.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.