- A recent settlement in another lawsuit could have pushed the Ripple vs SEC lawsuit to a key appeals court.
- Newly requested documents might have exposed inconsistencies in the SEC’s own stance on crypto.
- Ripple’s CEO has suggested a potential exchange-traded fund by 2025.
Holders of XRP, Ripple’s native token, are keenly watching developments as the legal battle with the SEC nears a potential turning point. A recent settlement between the SEC and Terraform Labs, creators of the UST stablecoin, could see the Ripple case head to the Second Circuit Court of Appeals.
Watchdog Group Targets SEC Records
This is significant because a higher court ruling could provide much-needed clarity on how cryptocurrencies are classified by U.S. regulators. Crypto lawyer James Murphy believes either Ripple or Coinbase, which is already appealing a separate SEC case, could be the first to land before the Appeals Court.
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The outcome of this case could have far-reaching consequences for the entire crypto industry. A favorable ruling could establish a legal precedent that secondary market crypto sales are not securities, mirroring the previous decision by the Second Circuit in the Coinbase case.
Adding another layer of intrigue, Empower Oversight, a watchdog group, is pushing the SEC to release records where former officials declared Bitcoin and Ether non-securities. If released, these records could significantly impact the Ripple case.
Since the SEC’s case against Ripple hinges on the argument that XRP is a security, evidence that the SEC itself has previously classified similar digital assets differently could seriously weaken their position.
XRP Price Jumps on Bullish Sentiment
These developments are causing ripples in the crypto market. The price of XRP jumped over 2% in the past 24 hours, accompanied by a surge in trading volume. This suggests that investors are growing more optimistic about the future of XRP as the legal battle progresses.ย
Derivatives data, which tracks futures contracts tied to the price of XRP, also suggests a bullish sentiment. Further boosting optimism, Ripple CEO Brad Garlinghouse reiterated his belief in an XRP exchange-traded fund (ETF) by 2025.ย
This potential ETF would allow investors to easily buy and sell XRP on traditional stock exchanges, potentially opening up the token to a wider audience and boosting its overall valuation.
On the Flipside
- Even if the case reaches the Second Circuit Court, appeals processes can take a significant amount of time.
- The Coinbase case involved different circumstances. A favorable ruling for Coinbase might not directly translate to a win for Ripple.
- Even if the SEC vs. Ripple case is settled favorably, gaining approval for an XRP ETF would require separate regulatory hurdles.
Why This Matters
A potential appeal to the Second Circuit Court and the release of SEC records on Bitcoin and Ether classifications could set a legal precedent for cryptocurrencies not being securities. This, coupled with rising XRP prices, bullish derivatives data, and the possibility of an XRP ETF, suggests the case has major implications for wider crypto market adoption and valuation.
If you’re interested in the future of cryptocurrency ETFs, this article discusses the possibility of XRP, SOL, and ADA ETFs:
XRP, SOL, and ADA ETFs on the Horizon? Ripple’s CEO Thinks So
Wondering what’s next for XRP? This article explores XRP’s recent price slump and discusses whether it’s a buying opportunity:
Is XRP Stuck in a Slump or Coiling Up for a Massive Surge?
