The XRP community has identified a key signal suggesting the four-year-long lawsuit between Ripple and the U.S. SEC could soon end. This optimism follows the SEC’s recent willingness to consider an XRP exchange-traded fund (ETF), leading experts to believe the lawsuit no longer holds weight.
Ripple’s legal battle with the SEC seemed to conclude in August 2024 when Judge Analisa Torres issued a final ruling, including penalties for Ripple’s violations. However, the SEC later reopened the case with a notice of appeal. The case has since progressed, with the SEC submitting its opening brief earlier this year. Meanwhile, Ripple is preparing to file its cross-appeal brief, due in April.
The lawsuit initially started under the leadership of former SEC Chair Gary Gensler. However, after his departure in January, crypto-friendly Mark Uyeda stepped in as the interim SEC chair. Uyeda has since pushed for several pro-crypto initiatives, including a Crypto Task Force to establish clear regulatory guidelines.
SEC’s Recognition of XRP ETF Sparks Speculation
A significant development occurred when the SEC acknowledged NYSE’s application to list Grayscale’s XRP ETF. This acknowledgment represents the first step in the approval process, signaling a shift in the agency’s stance. Previously, the SEC rejected Solana spot ETF applications, but now it appears open to considering an XRP ETF. The review process could take up to 240 days.
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Bloomberg analyst James Seyffart noted that under previous leadership, the SEC would have likely dismissed the XRP ETF application. He pointed out that as recently as December, the SEC rejected a similar application for Solana. He believes this new decision slightly increases the chances of ETF approval.
Shifting SEC Leadership Raises Questions
Nate Geraci, co-founder of the ETF Institute, emphasized the significance of this move. He expressed surprise that more people aren’t discussing the SEC’s acknowledgment of the XRP ETF filing, especially given the ongoing Ripple lawsuit. He argued that the SEC could have easily dismissed the filing but instead chose to accept it.
“This sends an enormous message, in my opinion,” Geraci stated. His view aligns with the growing belief in the XRP community that the SEC’s new leadership may soon drop the Ripple lawsuit.
Ripple Case Could Mirror Binance Lawsuit Pause
The community’s speculation intensified after the SEC recently paused its lawsuit against Binance. Many believe a similar move could apply to the Ripple case. Ripple’s Chief Legal Officer, Stuart Alderoty, has predicted that the SEC’s new leadership will eventually withdraw the appeal.
Related article: Ripple CEO: SEC’s XRP ETF Decision Signals Crypto Progress
However, some argue that only a permanent chairman could initiate such a decision. The nominee for the SEC chair position, Paul Atkins, is currently awaiting Senate confirmation. If confirmed, he could play a crucial role in determining the lawsuit’s fate.
For now, the SEC’s acknowledgment of the XRP ETF filing stands as the clearest sign yet that the lawsuit against Ripple may be nearing its end.
