Ripple CLO Celebrates SEC Policy Shift as XRP Lawsuit Countdown Hits Final Days

The crypto world holds its breath as Ripple's legal showdown with the SEC enters its endgame.

With just days left before the August deadline, Ripple's Chief Legal Officer is seizing on recent SEC policy changes—could this be the turning point XRP holders have waited for?

Wall Street lawyers suddenly care about regulatory clarity? Now that's a plot twist worthy of crypto's wild west.

TLDR

• Ripple’s Chief Legal Officer praised the SEC Chair for adopting a more balanced regulatory approach.
• The SEC launched Project Crypto to develop clearer and more tailored rules for digital assets.
• The SEC Chair stated that most crypto assets are not securities under current interpretations.
• Legal experts believe that both Ripple and the SEC may drop their appeals before the August 15 deadline.
• The XRP lawsuit may be resolved soon as the SEC moves away from aggressive enforcement actions.

The XRP lawsuit may be nearing a pivotal turn as recent SEC actions indicate a potential regulatory shift. Ripple’s Chief Legal Officer has publicly acknowledged the SEC Chair’s new approach, suggesting a softened enforcement stance. With the August 15 status report deadline approaching, legal analysts are now anticipating possible case dismissal.

Ripple Legal Officer Backs SEC Policy Pivot

Ripple CLO Stuart Alderoty recently acknowledged the SEC’s changing posture under current leadership, suggesting a marked break from prior practices. His comments follow the launch of “Project Crypto,” a new regulatory initiative aimed at creating clearer rules for digital assets. The timing has led to speculation that the XRP lawsuit could conclude ahead of the court’s next deadline.

Can Chair Atkins actually get the SEC commissioners to vote to dismiss the Appeal in SEC v Ripple and his SEC attorneys to file papers dismissing the Appeal. https://t.co/MzPc58VjRi

— bill morgan (@Belisarius2020) August 4, 2025

The SEC’s updated directive calls for cooperation between internal policy teams and Commissioner Hester Peirce’s crypto Task Force. This move signals a stronger focus on creating workable guidelines rather than continuing litigation-heavy strategies. Ripple’s legal team appears optimistic that this policy direction could ease long-standing regulatory conflicts.

Chair Atkins has also challenged the former SEC administration’s heavy reliance on the Howey Test for token classification. He clarified that most crypto assets likely do not meet the securities threshold under current interpretations. This recalibration further raises the possibility of the XRP lawsuit reaching a resolution in the NEAR term.

XRP Lawsuit Momentum Builds Ahead of August Decision

Legal professionals are now weighing the likelihood of mutual dismissal of appeals by both the SEC and Ripple. Former SEC attorney Marc Fagel suggested that each side may file to drop pending appeals before August 15. If that happens, the XRP lawsuit could end without further litigation.

Meanwhile, pro-Ripple lawyer Bill Morgan has questioned whether the agency will back away from its challenge. He cited recent statements and regulatory gestures that reflect a less confrontational stance by the Commission. The XRP lawsuit continues to dominate legal and financial discussions as stakeholders prepare for the court’s next move.

The ongoing policy shift appears to support Ripple’s position that it has not violated securities laws through XRP sales. With new SEC projects focusing on guidance rather than enforcement, Ripple’s legal strategy may see favorable outcomes. The outcome of the XRP lawsuit could also set a major precedent for other crypto cases under review.

SEC Reviews Crypto ETFs as XRP Lawsuit Nears End

The SEC is now reviewing crypto-related ETFs that include XRP, signaling broader changes in its regulatory approach. Grayscale’s Digital Large Cap Fund and the Bitwise Crypto Index Fund both list XRP among their top holdings. The SEC has opened public comment on these funds, with feedback due by August 22.

This regulatory review marks a key development for institutional access to XRP, should the lawsuit conclude favorably. If spot XRP ETFs gain approval, it WOULD expand the asset’s legitimacy in mainstream finance. The timing coincides with growing expectations that the XRP lawsuit will not proceed to extended appeals.

Moreover, the SEC has approved in-kind redemptions for ethereum and Bitcoin ETFs, matching gold-based ETP rules. This signals openness to treating digital assets under similar frameworks as traditional commodities.