13th February 2025 – (New York) The U.S. Securities and Exchange Commission (SEC) is scheduled to hold a closed meeting on Thursday, 13th February, amid mounting scrutiny from crypto markets and legal observers. With significant developments in recent weeks, the agenda is likely to touch on several high-profile issues, including the SEC’s appeal of the Ripple case’s Programmatic Sales ruling, the Grayscale XRP-spot ETF filing, and a lawsuit by whistleblower group Empower Oversight.
The meeting comes at a pivotal moment for the SEC, which has yet to clarify its position on the Ripple appeal following Gary Gensler’s departure and the appointment of Mark Uyeda as acting Chair. Legal experts suggest the SEC may delay further action on the Ripple case until Paul Atkins’ confirmation as the new Chair is secured. The Ripple case remains one of the SEC’s most prominent enforcement actions against a crypto firm, with significant implications for regulatory clarity in the sector.
The closed meeting could serve as a forum for the SEC to decide whether to proceed with or withdraw its Ripple appeal. According to former SEC attorney John Reed Stark, the agency may opt to pause or fully withdraw its crypto-related appeals, including Ripple, as part of a broader shift in enforcement strategy under new leadership.
Stark added that crypto-related litigation may be suspended, settled, or dismissed on terms favourable to defendants. If the Ripple appeal is withdrawn, it could set the stage for regulatory clarity around XRP and potentially expedite the approval of XRP-spot exchange-traded funds (ETFs), a development that could significantly impact the token’s market trajectory.
Empower Oversight’s lawsuit against the SEC could also influence the commission’s actions. The whistleblower group has demanded the release of findings from the Office of Inspector General’s (OIG) investigation into potential conflicts of interest within the SEC. Acting Chair Uyeda may find grounds to withdraw the Ripple appeal if the OIG uncovers evidence of bias against Ripple and XRP.
The controversy centres on former SEC Director William Hinman, who in 2018 declared bitcoin (BTC) and ethereum (ETH) were not securities. Empower Oversight alleges Hinman received millions from Simpson Thacher, a law firm promoting Enterprise Ethereum, while advising the SEC on crypto regulations. Despite warnings from the SEC’s Ethics Division, Hinman reportedly continued meeting with Simpson Thacher employees during his tenure. These revelations have raised questions about the impartiality of the SEC’s actions against Ripple and XRP.
XRP’s price has started reacting to speculation surrounding the upcoming SEC meeting. On Wednesday, 12 February, the token gained 2.52%, closing at $2.4741, in line with a broader rally across the cryptocurrency market. Despite this upward movement, XRP remains below its January high of $3.3999 and significantly lower than its 2018 record peak of $3.5505, as uncertainty about the SEC’s appeal continues to weigh on investor sentiment.
The token’s future hinges on the SEC’s next steps. A withdrawal of the appeal could spark a significant rally, potentially pushing XRP above its all-time high of $3.5505, especially if approval for an XRP-spot ETF follows, attracting strong institutional interest. Conversely, if the SEC decides to proceed with its appeal and ultimately rejects applications for XRP-spot ETFs, the token’s value could decline sharply, potentially falling below $1.50.Share