The U.S. Securities and Exchange Commission (SEC) has abandoned another high-profile cryptocurrency lawsuit. This time, the agency dismissed its case against Cumberland, a major liquidity provider in the crypto market. According to Coinpedia, the SEC and Cumberland reached a joint agreement to drop the case, pending final approval from SEC commissioners.
This move adds to a growing pattern. Over the past year, the SEC has backed down from lawsuits against Coinbase (COIN), Robinhood (HOOD), Uniswap (UNI-USD), and Gemini. Many in the crypto industry see this as a sign the agency is rethinking its enforcement strategy. However, one major case remains untouched. The lawsuit against Ripple Labs is still ongoing, leaving many to wonder why the SEC refuses to back down in this particular battle.
Ripple’s Legal Fight Stands Apart
Unlike the dropped cases, the SEC’s lawsuit against Ripple has dragged on since 2020. The agency claims Ripple’s sale of XRP violated securities laws. In 2023, Ripple won a partial victory when a judge ruled that XRP is not a security when sold to retail investors. However, the SEC quickly appealed the decision.
John Deaton, a lawyer representing XRP holders, emphasized that Ripple’s case carries higher stakes than the others. “Ripple’s case stands apart because it directly challenges the SEC’s authority over digital assets,” he said, highlighting why the agency remains firm in its pursuit. The stakes are higher, and both sides are deeply entrenched,” he said. The SEC’s persistence suggests that it sees Ripple as a precedent-setting case—one it cannot afford to lose.
New SEC Leadership Could Change Strategy
The SEC’s recent withdrawals come at a time of leadership change. Former Chair Gary Gensler, known for his tough stance on crypto, has stepped down. Acting Chair Mark Uyeda has signaled a more open approach, suggesting a possible shift in how the agency handles crypto regulation.
According to Blockchain Magazine, journalist Eleanor Terrett stated, “While the SEC has dropped several cases, Ripple’s lawsuit might be one of the last to resolve. The agency could be waiting to see how other legal precedents unfold.” This means Ripple’s legal battle could drag on, even as other companies see their cases disappear.
XRP’s Future Tied to SEC Appeal and U.S. Policy
Speculation is growing that the SEC might drop its appeal against Ripple’s partial court victory. Investors are also watching Friday’s White House Crypto Summit, where the U.S. government is expected to reveal details on a Crypto Strategic Reserve Asset.
According to Bob Mason of FX Empire, Trump’s crypto reserve plan could impact XRP’s demand. If XRP is included in the reserve, it could see increased institutional adoption. However, if lawmakers push back against its inclusion, the regulatory uncertainty could continue.
What Comes Next?
The SEC’s decision to drop the Cumberland case is a positive sign for regulatory clarity. However, the Ripple lawsuit remains a major roadblock for XRP’s future.
If the SEC withdraws its appeal, XRP could rally. Some analysts believe it could push past its all-time high of $3.55. But if the SEC continues its fight, XRP’s price may struggle under ongoing legal uncertainty.
At the time of writing, XRP is sitting at $2.4938.
