SEC v. Ripple: Focus turns to closed-door meeting as court deadline looms

XRP prices fell as the SEC-Ripple impasse intensified, with investors keeping a close eye on key SEC meetings this week.

XRP price fell on Sunday as the legal battle between the SEC and Ripple continues to escalate, keeping investors on the edge.

What Happened: After failing to agree on the terms to modify Judge Analisa Torres’s final ruling, the SEC will hold a closed-door meeting on Thursday to discuss whether a quorum can be reached to restart settlement negotiations.

Judge Torres had requested the SEC to make an indicative ruling on whether it would ban the sale of XRP to institutional investors and reduce a $125 million fine, which she had set in December. However, the SEC commissioners failed to agree on the request by the May 15 deadline.

The judge pointed out that the SEC had made procedural errors and failed to convincingly prove that the proposed terms were in the public and institutional interests.

“While the court appreciates the efforts of the Commission counsel to reach a potential settlement of the case, the Commission’s failure to make an indicative ruling by the May 15, 2025, deadline reflects a lack of cooperation by the Commission in expediting the resolution of this case,” Judge Torres wrote in her latest order.

If no progress is made, the court may pressure the SEC to resume its appeal, a default step. Alternatively, the court could grant an extension if both parties show good faith efforts to resolve the case.

The US Court of Appeals could also dismiss the SEC’s appeal on procedural grounds, although this remains highly unlikely. Absent a settlement, Ripple may proceed with its cross-appeal, further complicating the matter.

As the deadline approaches, these potential legal scenarios expose XRP to significant near-term price volatility. A second request for an indicative ruling and the court’s response could be the next major catalyst for XRP.

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XRP Price Action: XRP advanced 0.57%, following Saturday’s 1.44% gain, closing at $2.3426. The token performed worse than the broader market, which rose 0.95%, taking the total crypto market cap to $3.37 trillion.

XRP’s near-term outlook depends on fresh court filings, court rulings, and updates related to XRP-spot ETFs.

Technical support for XRP sits at $2.26, a level breached during the March downturn. A move above May 12’s high of $2.6553 could signal a continuation towards $3.00, with potential to reach the record high of $3.5505.