The XRP community has identified a significant indicator suggesting the four-year legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) could be nearing resolution.
This optimism follows the SEC’s recent openness to evaluating XRP-based ETFs, with analysts arguing that the Ripple lawsuit has lost its relevance under new leadership.
Ripple vs. SEC Case Weakens Under Interim Chair
Initially resolved in August 2024 after Judge Analisa Torres’ final ruling—which included penalties for Ripple’s violations—the case was revived months later when the SEC filed an appeal.
The appeal, initiated under former SEC Chair Gary Gensler, is now overseen by interim Chair Mark Uyeda, who has championed pro-crypto policies absent under prior leadership. Key initiatives include:
- Formation of a Crypto Task Force to streamline regulations.
- Accelerated reviews of crypto-related filings (e.g., ETFs).
- Transparent communication with industry stakeholders.
SEC’s XRP ETF Acknowledgment Signals Shifting Stance
A pivotal development emerged when the SEC acknowledged Grayscale’s application for an XRP ETF, filed via the NYSE. This marks the first step in the approval process, contrasting sharply with the SEC’s previous rejection of Solana ETF proposals.
👉 Why XRP ETFs could redefine crypto investments
Analyst Insights:
- James Seyffart (Bloomberg): Noted the SEC’s unusual acceptance of the XRP ETF filing, suggesting a 70% approval likelihood.
- Nate Geraci (ETF Institute): Called the move a "huge statement" amid ongoing Ripple litigation, highlighting the SEC’s deliberate choice not to dismiss the application.
"The SEC could have rejected this filing but chose to acknowledge it. This sends an enormous message about their stance on Ripple."
— Nate Geraci (@NateGeraci)
Path to Resolution: What’s Next?
With Ripple’s cross-appeal brief due in April, speculation grows that the SEC may:
- Drop the appeal under new leadership.
- Fast-track settlement talks to align with its evolving crypto policies.
- Await Senate confirmation of nominated Chair Paul Atkins for further action.
🚀 Key Takeaways:
- The SEC’s XRP ETF review period spans 240 days, with a decision expected by late 2025.
- Ripple’s CLO Stuart Alderoty predicts the appeal’s withdrawal, contingent on leadership changes.
FAQ
Q: Why is the SEC’s XRP ETF acknowledgment significant?
A: It suggests the agency no longer views XRP as a security, undermining its case against Ripple.
Q: Could the Ripple lawsuit end before 2025?
A: Yes, if the SEC withdraws its appeal or negotiates a settlement.
Q: How does this impact XRP’s price?
A: Positive regulatory clarity historically boosts investor confidence, potentially driving demand.
👉 Explore crypto’s regulatory future
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Conduct independent research before making investment decisions.
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