SEC to Prioritize Clear Crypto Rules After Ripple Case Ends, Says Chair Paul Atkins

The SEC is shifting its focus toward building a clear regulatory framework for cryptocurrency markets following the conclusion of its nearly five-year legal battle with Ripple Labs.

From courtroom to rulemaking

Last Thursday, both Ripple and the SEC filed to drop their appeals in the Second Circuit Appeals Court and agreed to bear their own costs, effectively ending one of the industry’s most closely watched cases.

SEC Commissioner Hester Peirce called the resolution a “welcome development,” noting that minds once occupied by litigation can now focus on creating robust, transparent policy. SEC Chair Paul Atkins said in response:

With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table. Our focus should be on building a clear regulatory framework that fosters innovation while protecting investors.

The long-lasting SEC-Ripple case

The SEC sued Ripple in December 2020, alleging it raised $1.3 billion through unregistered sales of XRP as securities. In July 2023, Judge Analisa Torres ruled XRP was not a security when sold to retail investors, but was a security in institutional sales. Ripple was fined $125 million in August 2024.

The case’s conclusion coincides with legislative efforts to pass the Digital Asset Market Clarity Act (CLARITY Act), aimed at defining digital asset market structures and providing regulatory certainty.

Push for the CLARITY Act

Republican lawmakers and the Senate Banking Committee are seeking to pass the bill by Sept. 30, though it faces resistance from leading Democrats.

House Financial Services Committee ranking member Maxine Waters has called the bill “dangerous,” warning it could weaken investor protections. Democrats have also opposed the Anti-CBDC Surveillance State Act, a separate Republican-backed bill aimed at banning a U.S. central bank digital currency. As political debate intensifies, the SEC’s next moves will be closely watched by both lawmakers and the crypto industry.