The legal dispute between the SEC and Ripple is pivotal for cryptocurrency regulation. At the core is the classification of XRP – whether it is a security or a digital asset. Ripple argues that XRP functions more like a commodity or a currency.

The SEC continues to appeal against Ripple, aiming to overturn Judge Torres’s ruling that XRP sales aren’t securities. This appeal process, filed in October 2024, has substantial implications for the broader crypto ecosystem.

With Gary Gensler potentially resigning, there are speculations President Trump’s appointment of crypto-friendly Paul Atkins might ease regulatory pressures on Ripple. Analysts foresee XRP’s market performance improving with less stringent crypto regulations.