Ripple CLO Predicts SEC Crypto Lawsuit Dismissals Under New Leadership in 2025

Ripple CLO Stuart Alderoty believes a leadership change at the SEC could lead to the dismissal of lawsuits against crypto firms. With Ripple XRP ecosystem expanding and ETFs on the horizon, regulatory shifts may benefit the industry

Ripple CLO Foresees End of SEC Crypto Crackdown in 2025

Ripple Labs is entering 2025 with momentum, as its XRP Ledger ecosystem expands and regulatory shifts may favor the industry. Ripple’s decentralized exchange (DEX) processed $400 million in swap volume in January, showcasing increased adoption. At the same time, Ripple’s push for an XRP-based exchange-traded fund (ETF) gains traction amid a more crypto-friendly US administration. Meanwhile, Ripple’s long-standing legal battle with the SEC may take a turn, as Chief Legal Officer Stuart Alderoty suggests that a leadership change at the agency could result in the withdrawal of enforcement actions against crypto firms.

Ripple’s Legal Battle and SEC Leadership Shakeup

Speaking at XRP Community Day 2025, Alderoty expressed optimism about regulatory developments under the potential leadership of Paul Atkins, Trump’s nominee for SEC Chair. He revealed that if confirmed, Atkins may move to dismiss lawsuits against crypto firms that do not involve fraud allegations. This could be a pivotal moment for Ripple, which has been in legal disputes with the SEC since 2020.

The SEC’s lawsuit against Ripple, filed in December 2020, accused the company of using XRP as an unregistered security to raise funds. The case has dragged on for over four years, with both sides appealing court decisions. A federal judge ruled Ripple liable for $125 million in 2024, intensifying the legal battle.

Alderoty criticized the SEC’s enforcement-first approach, calling it ineffective for crypto regulation. He suggested that Atkins, once confirmed, may adopt a more collaborative approach that includes dismissing cases focused on registration disputes.

“Litigation and regulation by enforcement are not the right paths for crypto. I believe the new SEC understands that, and I’m cautiously optimistic that in 2025, this case will be withdrawn,” Alderoty stated.

Ripple CEO Brad Garlinghouse echoed these sentiments, pointing to Trump’s pro-crypto stance and suggesting that Ripple’s decision to expand its US operations reflects confidence in the administration’s direction.

Political Shifts and Ripple’s Influence

Ripple’s leadership has maintained close ties to the Trump administration. Garlinghouse and Alderoty attended Trump’s inauguration in 2025, and Ripple donated $5 million in XRP to the presidential inaugural fund. Additionally, Alderoty personally contributed $300,000 to Trump-aligned political committees.

These connections may give Ripple added influence in shaping crypto-friendly policies. Additionally, a Republican-controlled Congress could facilitate crypto market structure legislation in 2025. Ripple has also contributed $45 million to Fairshake, a crypto-focused political action committee, supporting lawmakers advocating for clearer regulations.

“We have a pro-crypto Congress and a pro-crypto president,” Alderoty said. “I expect major regulatory developments before the end of 2025.”

However, Paul Atkins’ confirmation as SEC Chair remains uncertain, as it faces Senate approval hurdles. If confirmed, his leadership could mark a turning point for Ripple and the broader crypto market.

XRP Ecosystem Growth and Institutional Adoption

Despite the legal battle, XRP adoption continues to grow. Ripple’s XRP Ledger decentralized exchange (DEX) hit $400 million in swap volume in January 2025, indicating increasing usage. Since its launch in 2024, the DEX has processed over $1 billion in crypto swaps.

Garlinghouse also highlighted Ripple’s success with its USD-pegged stablecoin, RLUSD, designed to enhance fiat-to-digital transactions and strengthen XRP Ledger’s financial ecosystem.

At the same time, Ripple is actively involved in the ETF race. Several firms, including Bitwise and WisdomTree, have filed for XRP-based ETFs. If approved, analysts estimate these ETFs could attract over $8 billion in inflows, boosting XRP’s liquidity and institutional adoption.

Trump’s Crypto Agenda and the Future of XRP ETFs

Trump’s administration has positioned itself as crypto-friendly, with a focus on making the US a global crypto hub. In 2024, the SEC approved Bitcoin and Ethereum ETFs, paving the way for additional crypto asset funds.

“Trump’s victory was a game-changer for crypto,” Garlinghouse said. “The previous administration’s war on digital assets is over. We expect more progress ahead.”

Prediction markets estimate a 73% chance of XRP ETF approval in 2025, with institutional investors closely watching regulatory developments.

Conclusion: A Turning Point for Ripple and Crypto?

Ripple’s ongoing legal battle with the SEC remains a key factor in XRP’s future growth. However, with a changing political climate, an expanding XRP ecosystem, and institutional interest in ETFs, Ripple appears poised for a transformative year.

Should the SEC adopt a more cooperative stance under new leadership, it could signal a major shift in US crypto regulation, paving the way for further growth and innovation in the industry.

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