Ripple's Chief Technology Officer Discusses the Reasons Behind SEC's Termination of XRP Lawsuit After a Four-Year Span
Ripple Wins Against SEC and Sets Sights on Crypto Regulation
After a long-drawn legal battle spanning over six years, Ripple’s Chief Legal Officer, Stuart Alderoty, announced that the SEC has finally dropped its lawsuit against Ripple. In a brief, yet insightful video, Alderoty explained that the SEC had to back off due to the ambiguity surrounding crypto laws.
Alderoty succinctly summarized the battle in just 60 seconds, stating that you can't sue someone before explaining the rules. This statement underscored a long-standing issue in U.S. crypto regulation - the lack of clarity. He further emphasized the need to move forward, clear up the confusion, and focus on fostering innovation within the crypto sector. Ripple intends to collaborate closely with Congress to help establish smart crypto regulations.
Despite the legal turmoil, Ripple hasn't been standing still in the business arena. The company recently shelled out $1.25 billion to acquire Hidden Road, with the aim of venturing deeper into the established financial services industry. Ripple also made a strategic move by offering to purchase Circle, the company behind the USD Coin stablecoin, for a staggering $5 billion, albeit the bid was declined.
With the appointment of Paul Atkins as the new SEC Chairman, known for his pro-crypto stance, there's an increasing possibility of seeing clear-cut rules for digital assets. The Trump administration's efforts to set down rules for stablecoins further brightens the outlook for the crypto industry. Ripple's battle with the SEC has become a pivotal point in the history of U.S. crypto regulation.
The U.S. crypto regulatory landscape has undergone significant changes in 2025, shifting towards a pro-innovation stance. After the SEC-Ripple settlement, the SEC adjusted its enforcement approach and pursued regulatory clarity. Key policy changes include the Fed's withdrawal of restrictive guidance and the formation of a Crypto Task Force to align with the SEC's lawsuit against Binance.
Institutional entities face fewer restrictions in crypto-asset activities, with banks and financial institutions embracing innovation under the Fed's evolving risk approach. The clearer stance of the SEC, coupled with settlements like Ripple's, indicates reduced litigation risks for compliant firms. In 2025, expect further clarity on stablecoins, jurisdictional boundaries between the SEC and CFTC, and potential federal crypto reserve proposals.
Also Read: Mythbusting: Did Brad Garlinghouse of Ripple offer $20B to Circle?
Sources:[1] Cointelegraph (2025). "Federal Reserve rescinds crypto-related supervisory letters". https://cointelegraph.com/news/federal-reserve-rescinds-crypto-related-supervisory-letters[2] The Block (2025). "Pro-crypto lawmakers advance bills focused on stablecoin regulation". https://www.theblockcrypto.com/post/997195/pro-crypto-lawmakers-advance-bills-focused-on-stablecoin-regulation[3] SEC (2025). "SEC and Ripple Labs reach settlement". https://www.sec.gov/news/press-release/2025-XX-xx[4] CoinDesk (2025). "Trump's crypto regulations: A comprehensive look". https://www.coindesk.com/policy/2025/02/01/trumps-crypto-regulations-a-comprehensive-look/[5] Bloomberg (2025). "SEC pauses lawsuit against Binance to align with Crypto Task Force". https://www.bloomberg.com/news/articles/2025-02-09/sec-pauses-lawsuit-against-binance-to-align-with-crypto-task-force
- Ripple's legal victory against the SEC has set a precedent in the crypto industry, highlighting the need for a stable regulatory environment.
- Recently, Ripple acquired Hidden Road for $1.25 billion, aiming to expand its influence in the established financial services industry.
- In the same year, Ripple proposed a $5 billion bid to purchase Circle, the company behind the USD Coin stablecoin, although the offer was declined.
- The appointment of Paul Atkins as the new SEC Chairman, known for his pro-crypto stance, increases the possibility of clear-cut regulations for digital assets.
- The SEC's new stance towards crypto, influenced by the Ripple settlement, could lead to reduced litigation risks for compliant firms.
- With the formation of a Crypto Task Force and the withdrawal of restrictive guidance by the Fed, the U.S. crypto regulatory landscape is moving towards greater clarity in areas like stablecoin regulation and federal crypto reserve proposals.
