Ripple is entering 2025 with significant momentum as its XRP Ledger ecosystem expands and regulatory winds appear to shift in its favor. The network’s decentralized exchange (DEX) recorded $400 million in swap volume in January, highlighting increased adoption, while Ripple’s push for an XRP-based exchange-traded fund (ETF) gains traction amid a more crypto-friendly US administration. Meanwhile, Ripple’s ongoing legal battle with the SEC could take a new turn, with Chief Legal Officer Stuart Alderoty suggesting that a leadership change at the agency might lead to the withdrawal of enforcement actions against crypto firms. Ripple CLO Stuart Alderoty Hints at Potential Dismissal of SEC Lawsuits Under New Leadership Stuart Alderoty, chief legal officer at Ripple Labs, has expressed optimism about the future of cryptocurrency regulation in the United States under the potential leadership of Paul Atkins as the next chair of the US Securities and Exchange Commission (SEC). Speaking during an X Spaces discussion for XRP Community Day 2025, Alderoty revealed that the SEC under Atkins, once confirmed by the Senate, might withdraw civil suits against crypto firms that do not involve allegations of fraud. This development could mark a significant turning point for Ripple Labs, which has been embroiled in a legal battle with the SEC since 2020. Ripple’s clash with the SEC began in December 2020 when the regulatory body filed a lawsuit accusing the blockchain payments firm of using XRP as an unregistered security to raise funds. The case has dragged on for over four years, with both parties exchanging legal blows. In August 2024, a federal judge ruled Ripple liable for more than $125 million, leading to appeals from both the SEC and Ripple. The central argument in the case has revolved around whether XRP should be classified as a security, with broader implications for the classification of digital assets in the US. Alderoty criticized the SEC’s strategy of ”regulation by enforcement,” calling it an ineffective path for governing the crypto space. He suggested that Atkins, if confirmed as SEC chair, would prioritize a more collaborative approach, which might include withdrawing lawsuits focused primarily on registration issues. “Litigation, regulation by enforcement, is not the path that this country should be pursuing,” Alderoty stated. “I believe the new SEC understands that, and I remain cautiously optimistic that at some point during 2025, the case will be voluntarily withdrawn.” Alderoty’s optimism extends beyond Ripple’s specific case to the broader crypto industry. He pointed to the Trump administration’s actions in support of digital assets, including an executive order to establish a working group on digital asset regulation and the launch of an SEC crypto task force. Ripple’s leadership has been vocal about its positive outlook on the current administration’s approach to the crypto sector. Ripple CEO Brad Garlinghouse echoed these sentiments, citing the administration’s pro-crypto stance as a factor in Ripple’s decision to expand its US-based operations. Following Trump’s reelection in 2024, Ripple announced that 75% of its new job openings would be located in the United States. Alderoty also highlighted the potential for meaningful legislation with the support of a Republican-controlled Congress. Ripple’s contributions to the political action committee Fairshake, totaling $45 million, may have helped elect lawmakers sympathetic to the crypto industry. According to Alderoty, a crypto market structure bill could be passed before the end of 2025, creating a clearer regulatory framework for digital assets. “I think we’ve got a pro-crypto Congress driven by a pro-crypto president,” Alderoty said. “I think we can see [legislation] happening certainly before the end of 2025.” Ripple’s ties to the Trump administration extend beyond policy alignment. Both Alderoty and Garlinghouse have maintained a close relationship with the president. The pair dined with Trump at his Mar-a-Lago estate in January 2025 and attended his inauguration events in Washington, D.C., as official guests. Ripple has also been a significant financial supporter of Trump’s political efforts, contributing $5 million worth of XRP to the presidential inaugural fund and Alderoty personally donating more than $300,000 to committees backing Trump’s campaign. These connections could provide Ripple with additional influence in shaping the regulatory landscape under the new SEC leadership. However, uncertainty remains regarding whether Paul Atkins will secure Senate confirmation as the next SEC chair. While Trump’s nomination of Atkins aligns with his administration’s crypto-friendly stance, the process faces potential political challenges. What’s Next for Ripple and the Crypto Industry? Ripple’s CLO hinted that the road to resolving its legal battle with the SEC may not be immediate, even with potential changes in leadership. “The SEC is still a bureaucracy,” Alderoty noted, emphasizing the time required to implement policy shifts. For Ripple and the broader crypto industry, the possibility of the SEC dropping enforcement cases marks a glimmer of hope. Should Atkins prioritize a less adversarial approach to regulation, it could open the door for greater innovation and growth in the US crypto sector. At the same time, the outcome of Ripple’s appeals and the future of its lawsuit with the SEC will remain critical for defining how digital assets are treated under US securities laws. Ripple’s leadership appears confident that the ongoing legal challenges will ultimately strengthen the company’s position. As the SEC transitions under new leadership, the case against Ripple could become a defining moment for crypto regulation in the United States. XRP Ledger's Decentralized Exchange Records $400M in January, Ripple CEO Celebrates Milestones In related news, Ripple CEO Brad Garlinghouse has highlighted significant progress for the XRP Ledger ecosystem, reporting that its native decentralized exchange (DEX) clocked $400 million in swap volume in January 2025. This milestone, averaging approximately $17 million in daily volume, suggests growing momentum for the blockchain network and its expanding suite of financial products. Speaking during XRP Community Day on Jan. 28, Garlinghouse noted that the DEX has facilitated over $1 billion in cryptocurrency swaps since its launch in 2024. Its rapid growth is among several reasons “why 2024 will certainly stand out as one of the most monumental years for Ripple,” he stated. The rise of XRP Ledger’s DEX is just one of the achievements Ripple celebrated entering 2025. Garlinghouse emphasized that the company is seeing early but promising traction for its US dollar-pegged stablecoin, RLUSD , launched in 2024. The stablecoin aims to provide a bridge for fiat-to-digital transactions and increase XRP Ledger’s appeal as a financial ecosystem. Additionally, Ripple has been making waves in the exchange-traded fund (ETF) space. Several filings for XRP-based ETFs, including proposals from asset management giants Bitwise and WisdomTree, signal institutional interest in the XRP ecosystem. According to Garlinghouse, investment bank JPMorgan estimates these XRP ETFs could bring upward of $8 billion in inflows, further boosting the ecosystem’s liquidity and market presence. Garlinghouse attributed much of Ripple’s recent success to a favorable political climate under US President Trump’s administration. Trump’s victory in the 2024 presidential election has reinvigorated optimism in the cryptocurrency industry, particularly for XRP, which has seen its price skyrocket by over 500% since the election on Nov. 5. “Trump winning the election… whatever you think about his personal politics, for crypto, it is certainly profound,” Garlinghouse said during the discussion. He added that the previous administration’s “unlawful war on crypto” now feels like a thing of the past, with regulatory clarity and industry-friendly policies providing a tailwind for XRP’s growth. Trump’s administration has promised to make the US the “world’s crypto capital” and has already begun appointing crypto-friendly leaders to head key financial regulatory agencies, including the SEC. In 2024, the SEC approved spot Bitcoin and Ether ETFs, setting a precedent that many investors believe will pave the way for XRP-based ETFs in 2025. Prediction market Polymarket currently places the odds of a US XRP ETF approval at around 73%. Ripple’s Expanding Ecosystem: From DEX to Stablecoin and ETFs Ripple Labs, the developer behind XRP Ledger, has worked to position its blockchain network as a scalable, enterprise-friendly alternative to Ethereum. While XRP Ledger historically lacked third-party smart contract capabilities, it has innovated in other areas. The introduction of its decentralized exchange and automated market maker (AMM) tools demonstrate its focus on financial applications and liquidity solutions. The recent success of XRP Ledger’s DEX, combined with the launch of RLUSD, reflects Ripple’s ambition to create a robust ecosystem catering to both retail and institutional users. The proposed XRP ETFs, if approved, could mark a turning point in bringing more traditional investors into the fold. As Ripple moves into 2025, the company’s leadership appears confident about the future. With Trump in office, Garlinghouse predicts continued regulatory improvements and opportunities for growth in the cryptocurrency industry. He highlighted the administration’s focus on building a strong foundation for digital asset markets, noting that the approval of spot Bitcoin and Ether ETFs is just the beginning. Despite its successes, Ripple faces challenges, including the uncertain timeline for regulatory approvals. While optimism remains high, the SEC has yet to greenlight XRP-based ETFs, leaving investors to anticipate potential announcements later in 2025.
