Democrats Take Aim at SEC for Dropping Ripple Lawsuit
Analysis
Price Impact
MedDemocrats' criticism of the sec for dropping the ripple lawsuit, along with others, signals sustained political pressure for stricter crypto enforcement. while the direct legal threat to ripple is resolved (as per the article's timeline of 2025), this news introduces renewed regulatory uncertainty for the broader crypto market, which can indirectly affect sentiment around xrp.
Trustworthiness
HighThe information is presented as a direct report on a 'sharply worded letter' from democratic lawmakers to the sec chairman, indicating a concrete political action. the article provides specific details about the sec's past actions and the lawmakers' arguments.
Price Direction
NeutralThe direct lawsuit against ripple was dropped in 2025, which was a significant positive for xrp. this current news is about the political reaction to that decision. while the criticism itself doesn't reinstate the lawsuit, it creates a less favorable political and regulatory climate for the crypto industry as a whole, introducing an element of long-term uncertainty rather than an immediate bullish or bearish move for xrp.
Time Effect
LongPolitical pressure and calls for increased regulatory scrutiny tend to influence future policy and legislation over a longer period, rather than causing immediate short-term price fluctuations for individual assets whose direct legal issues are already resolved.
Original Article:
Article Content:
Cover image via U.Today Read U.TODAY on Google News Democrats are turning their fire on the Securities and Exchange Commission after the agency quietly dropped its long-running lawsuit against Ripple and other companies. Advertisement They argue that a retreat from crypto enforcement threatens investor protection and the credibility of U.S. markets. A sharply worded letter In a scathing letter to SEC Chairman Paul S. Atkins, Democratic lawmakers accuse the Commission of abandoning meritorious crypto cases at precisely the moment when political pressure from the industry has intensified. HOT Stories Morning Crypto Report: Say Goodbye to 1.21% of All XRP, Shiba Inu (SHIB) Confirms Golden Cross: 23% Rally Expected, Cardano Price Prints Legendary Bull Pattern: ADA Next Silver? XRP, TSLA, and GME Among Top Searches on Elon Musk's X Crypto Market Review: XRP Loses Impulse; Bitcoin (BTC) Signals Oversold Conditions; Shiba Inu (SHIB) Rejected Under Tight Range Ripple CEO Breaks Silence on Coinbase Drama The Ripple lawsuit, once emblematic of the SEC’s aggressive “regulation by enforcement” approach under former leadership, has become a symbol of what critics describe as a wholesale reversal in posture. Advertisement Since January 2025, the SEC has dismissed or closed at least a dozen crypto-related enforcement actions, including cases against Binance, Coinbase, Kraken, and Ripple. You Might Also Like Wed, 01/14/2026 - 19:03 Zcash Foundation No Longer in SEC's Crosshairs By Alex Dovbnya Lawmakers argue that this pattern is not coincidental. They point to an unprecedented surge in crypto industry lobbying and political donations. To Democrats, the timing creates what they describe as an “unmistakable inference” of pay-to-play. Advertisement Coinbase and Kraken followed a similar arc. In both cases, courts found that the SEC had plausibly alleged securities violations involving crypto tokens and platform operations. Both cases survived motions to dismiss. Yet both were ultimately dropped in 2025 due to the SEC trying to reform its approach. Democrats reserve their sharpest criticism for the SEC’s handling of the case against Justin Sun, founder of Tron. The allegations against him were later bolstered by parallel civil litigation and settlements with celebrity promoters. Yet in February 2025, the SEC asked the court to pause the case to explore settlement talks. The timing, lawmakers argue, is alarming. Sun has poured tens of millions of dollars into White House-affiliated crypto ventures. They warn that failing to pursue Sun aggressively would further undermine trust in the SEC’s independence. #Ripple News