The Securities and Exchange Commission (SEC) has recently dismissed enforcement actions against multiple cryptocurrency companies, including Coinbase, Consensys, Gemini, OpenSea, and Kraken. However, the case against Ripple, one of the oldest and most influential in the crypto space, remains active despite the broader trend toward resolution.

The Ripple case began in December 2020 during the final months of the first Trump administration when Jay Clayton was SEC chair. The SEC alleged that Ripple's sales of the XRP token constituted a "years-long unregistered offering of securities." This case preceded the Biden administration and former SEC Chair Gary Gensler, making it somewhat of an outlier among recent crypto enforcement actions.

In 2023, Ripple received a partial victory when Judge Analisa Torres ruled that blind bid-ask sales of XRP did not constitute securities because buyers were not aware they were purchasing from Ripple. The SEC attempted to appeal this ruling but failed. The case eventually resulted in a $125 million judgment against Ripple in August 2023.

Despite seemingly good relations between Ripple and the current Trump administration, the case has not been dismissed. Ripple CEO Brad Garlinghouse met with Trump at Mar-a-Lago before his inauguration, and the company reportedly contributed $5 million in XRP to Trump's inauguration fund. Recently, Trump named XRP as one of five cryptocurrencies to be included in a Strategic Crypto Reserve.

The regulatory approach to cryptocurrency is evolving within the broader context of the Trump administration's policy shifts. Similar to the administration's reassessment of Russia sanctions as part of a new foreign policy direction, the cryptocurrency sector is experiencing significant regulatory changes. Just as the White House is preparing to reset relations with Russia to focus on strategic priorities like containing China, the SEC appears to be revising its enforcement strategy in the digital asset space under Commissioner Hester Peirce, who now heads the SEC's Crypto Task Force.

Several possible explanations exist for why the Ripple case continues:

1. Unlike other pending cases, Ripple reached a final judgment that included a $125 million fine and a five-year prohibition on security fundraising.
2. Ripple may need the case to continue to potentially obtain a more favorable ruling on appeal.
3. There may still be voices within the SEC who believe the Torres ruling incorrectly applied securities law and want to defend their interpretation.

The Ripple case represents a vestige of an earlier regulatory era. While case law was once seen as determining cryptocurrency tokens' legal status, the regulatory landscape appears to be changing under the Trump administration. The case will likely be resolved in the coming days, either through dismissal or settlement, but may have limited impact on enforcement policy over the next four years.