SEC Insider Confesses: 'We Were Wrong About XRP'
- Samantha
- Aug 12, 2025
- 2 min read
The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been one of the most closely watched cases in the cryptocurrency space. Rumors have swirled recently about an “SEC insider” confession claiming, “We were wrong about XRP.” While no official insider statement has emerged, the unfolding facts suggest a significant shift in how XRP is viewed — even within regulatory circles.
The Background: SEC vs. Ripple
In December 2020, the SEC filed a lawsuit against Ripple Labs, alleging that the company conducted an unregistered securities offering by selling XRP tokens, totaling around $1.3 billion. The case raised serious questions about whether XRP should be classified as a security, impacting its trading and adoption.
For years, this legal uncertainty has cast a shadow over XRP’s future and the broader crypto ecosystem, with many exchanges delisting XRP to avoid regulatory risk.
The Court’s Landmark Ruling
In 2023, a major turning point came when Judge Analisa Torres ruled that XRP was not a security when sold on public exchanges or distributed to employees and developers. However, the court also determined that XRP sales directly to institutional investors did qualify as unregistered securities sales.
This nuanced ruling marked a partial victory for Ripple, clearing the way for XRP’s continued use on public platforms while maintaining restrictions on private institutional sales.
Hints of Changing Attitudes Inside the SEC
Though no direct “confession” has been publicly made, internal documents and statements from former SEC officials have revealed unease and second thoughts about how XRP was handled. Some former SEC leaders, including former chair Mary Jo White, have expressed doubts about the agency’s approach to crypto regulation.
Ripple’s CEO Brad Garlinghouse has repeatedly asserted that the SEC’s position was “dead wrong,” and this sentiment seems to resonate more broadly as the case concludes.
The End of the Lawsuit — What It Means for XRP
In August 2025, both Ripple and the SEC officially ended their legal battle. Ripple agreed to pay a $125 million fine, but the long-running uncertainty is now over. The injunction restricting institutional XRP sales remains, but public trading continues unimpeded.
This resolution represents a crucial milestone not only for XRP but for the crypto industry’s legal landscape, highlighting the need for clearer regulatory frameworks.
Looking Ahead: XRP’s Bright Future
The Ripple-SEC case has set important legal precedents, clarifying that not all cryptocurrencies are securities — a relief to many in the crypto space. XRP is poised to grow as it rebuilds trust and expands partnerships worldwide.
While the “SEC insider confession” remains more of a hopeful narrative than a documented fact, the reality is that the legal and regulatory environment around XRP has shifted significantly, signaling a new chapter of acceptance and opportunity.
