Ripple XRP Price Spikes on Expectations of a Lawsuit Settlement Ahead Of SEC's Closed-door Meeting

Ripple XRP price jumped to £2.64 ($3.25) at 2:50 p.m. ET on 22nd January as community sentiment remained bullish on a potential dismissal of the years-long legal battle with the US Securities and Exchange Commission (SEC) as the agency prepares for a closed meeting at 2 p.m. on 23rd January.

According to the SEC, the closed meeting will focus on settling injunctive actions and administrative proceedings, resolving litigation claims, and addressing matters linked to enforcement proceedings.

The SEC sued Ripple in 2020 because it offered XRP as an unregistered security to raise funds from investors, supposedly bypassing the required approval channels.

The lawsuit is among 83 crypto-related enforcement actions initiated under former SEC Chair Gary Gensler, who frequently clashed with Wall Street and crypto firms, claiming many were involved in market manipulation and fraud.

First SEC Meeting Under Pro-Crypto Officials

This SEC meeting will be the first under pro-crypto SEC acting chair Mark Uyeda. Earlier this week, Uyeda unveiled a crypto task force to overhaul crypto regulations, especially about when and how a cryptocurrency can be classified as a security. Uyeda has been urging the SEC to change its enforcement policies for cryptocurrencies.

In November 2024, Uyeda said: "The Commission's war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm. President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC's role is to carry out that mandate."

The SEC will reportedly go over pending crypto-related litigations in the first days of the Trump Administration and potentially settle cases that aren't involved in fraud.

Ex-SEC Lawyer Says Ripple Settlement Could Be Weeks Away

However, ex-securities lawyer Marc Fagel posted on X, formerly Twitter, that the Ripple settlement might not happen until Paul Atkins, a pro-crypto official, is appointed as the SEC Chair.

"At some point perhaps (though more likely to happen after Atkins' appointment as Chair). But not at this week's meeting," Fagel wrote. "This is the same meeting they hold nearly every week. They will vote on recommendations calendared weeks ago. Those expecting something monumental to happen are about to be disappointed."

FoxBusiness journalist Eleanor Terrett echoed Fagel's views in the post. Elsewhere, crypto expert John Deaton said during the Good Morning Crypto Show that Uyeda and Atkins could be pushing for the dismissal of the lawsuit.

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