XRP’s Regulatory Landscape: Coinbase Under SEC Scrutiny Amid Shifting Priorities

The U.S. Securities and Exchange Commission (SEC) continues its investigation into Coinbase, focusing on potential misrepresentation of user counts, even as it dismisses other cryptocurrency-related cases. This scrutiny persists despite a broader regulatory shift under the new administration, which has seen the SEC drop longstanding suits, including the high-profile XRP case. The article delves into the implications of these developments for Coinbase and the broader crypto market, particularly XRP, as regulatory clarity remains elusive.

SEC Scrutinizes Coinbase: Unexpected Probe Continues

The U.S. Securities and Exchange Commission (SEC) persists in its investigation of Coinbase, despite a broader shift toward dismissing cryptocurrency-related cases under the new administration. While fraud allegations remain a priority, the regulatory body has dropped longstanding suits, including the high-profile XRP case. Coinbase, however, remains under scrutiny for potential user count misrepresentation.

Regulatory winds shifted following the appointment of crypto-friendly chairman Paul Atkins, leading to the dismissal of Coinbase’s marketing lawsuit. Yet, sources indicate the SEC continues to probe the exchange’s operations. Market participants watch closely as the outcome could set precedent for future crypto enforcement actions.

XRP Price Plummets as Judge Torres Rejects SEC and Ripple’s Joint Motion

XRP’s value tumbled sharply following a critical development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission. On May 15, 2025, District Judge Analisa Torres denied a joint motion from both parties seeking court approval to modify terms of the August 2024 Final Judgment.

The rejected proposal WOULD have lifted an injunction against Ripple’s unregistered securities sales and slashed its $125 million penalty to $50 million. Judge Torres’ one-line order—"The motion is DENIED"—dealt a blow to Ripple’s efforts to soften the regulatory impact. Market reaction was immediate, with XRP shedding value as traders digested the setback.

Ripple vs. SEC Case Hits Procedural Snag Over Filing Error

Judge Analisa Torres denied a joint request from Ripple Labs and the U.S. SEC due to incorrect procedural filing. Legal expert James K. Filan noted the parties failed to cite the proper legal rule, forcing a refiling. Attorney Fred Rispoli emphasized the technical nature of the setback, suggesting the path to settlement remains open despite delays.

The XRP community watches closely as the high-stakes case navigates procedural hurdles. Market observers anticipate minimal price impact, with most expecting a resolution later this year. Ripple’s legal team has historically demonstrated adaptability in responding to judicial requirements.

Ripple CLO Addresses SEC Motion Dismissal, Reaffirms XRP Legal Clarity

Ripple’s Chief Legal Officer Stuart Alderoty has responded to a procedural setback in the company’s ongoing legal battle with the SEC. A U.S. district judge rejected a joint motion seeking to modify terms of Ripple’s $125 million settlement, calling the request "procedurally improper."

The decision maintains the full penalty amount and existing restrictions from the 2024 judgment. However, Alderoty emphasized this technical ruling doesn’t undermine Ripple’s landmark victories, particularly the court’s determination that XRP doesn’t qualify as a security. "Nothing in today’s order changes Ripple’s wins," he stated definitively.

The denied motion had sought to reduce the civil penalty to $50 million while lifting certain operational restrictions. Market observers note the outcome preserves regulatory uncertainty for exchanges listing XRP, though the fundamental classification remains settled law.