- XRP’s path remains complex due to its ongoing legal battle with the SEC, which likely requires resolution before an XRP ETF can be approved.
- Recent shifts in SEC leadership and diminishing legal cases against cryptocurrencies like Solana and Cardano have opened possibilities for ETFs and futures.
The cryptocurrency industry has seen new developments under the Trump government. With a shift in the regulatory board especially the leadership in the SEC has seen legal cases surrounding crypto firms start to diminish.
This change in legal cases surrounding crypto firms could potentially open doors for crypto-related products like ETF and futures for these assets.
However, for XRP, the situation gets a little complex. Ripple and the U.S. Securities and Exchange Commission are engaged in a legal battle that is nearing five years old. Recently, the U.S. government announced XRP’s inclusion in its strategic digital asset reserve along with Cardano (ADA) and Solana (SOL).
Additionally, this also raises concerns about whether Ripple will settle with the SEC before an XRP ETF gains approval.
Legal Battles Clearing the Path for Crypto ETFs
A wave of dismissed SEC cases has shifted the landscape for popular cryptocurrencies such as XRP, Solana, and Cardano. As previously published, regulatory actions had labeled these assets as unregistered securities, leading to major exchanges like Robinhood, Coinbase, and Kraken being under the bus.
However, with legal challenges dissipating, analysts see a clearer path for these digital assets to be integrated into regulated financial products.
Bloomberg ETF analyst James Seyffart recently shared insights on the matter in an interview with a news outlet. According to James, these cryptocurrencies were directly cited in SEC lawsuits, complicating their classification and limiting their availability.
Now, as legal pressure eases, the likelihood of ETFs and futures tied to these assets is increasing.
XRP’s Ongoing Legal Struggle
Unlike other cryptocurrencies, XRP is still entangled in a legal battle with the SEC. Ripple has jubilated some key victories, but certain aspects of the case remain unresolved, with appeals still in progress.
Notably, this ongoing litigation makes XRP’s path to an ETF more uncertain compared to other cryptocurrencies that have recently escaped SEC scrutiny.
Seyffart believes an XRP ETF is still possible, but the outcome of Ripple’s case will be a decisive factor. He highlighted the possibility of a settlement, stating;
XRP is a little different because they have the direct lawsuit between Ripple and the SEC that’ll likely need to be sorted before we can see an ETF on there. I think it’s also a little different in the sense that I don’t know that it’s going to be like fully dropped in the way that some of these other ones are. There’s probably going to be some sort of settlement. I don’t know who knows how it’s actually going to play out.
It is worth mentioning that one of the most anticipated developments in the XRP market is the introduction of futures contracts. While XRP futures are currently absent, Seyffart suggested that legal clarity could pave the way for their launch.