XRP ETF Odds Rise As Ripple SEC Lawsuit Concludes

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous legal battles and regulatory decisions that have shaped the industry’s trajectory. The recent Ripple-SEC ruling undoubtedly marks a significant milestone in the crypto world, potentially paving the way for XRP ETF approvals.

The prolonged court case between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) has ended with a decision on final penalties. This could open up possibilities for an XRP exchange-traded fund (ETF) to be approved. Although Ripple incurred a substantial fine, its native token now benefits from increased legal understanding.

XRP ETF Calls Grow Amid Ripple SEC Ruling

The conclusion of the lawsuit has sparked renewed speculation about the potential approval of an XRP ETF. Kashif Raza, the founder of Bitinning, took to X (formerly Twitter) to express optimism about the future of XRP in the ETF market. Raza wrote:

As an analyst, I would rephrase the statement as follows:

Nate Geraci, head of ETF Store, expressed similar thoughts on platform X, questioning, “When will there be an XRP ETF?” He also emphasized the importance of Judge Torres’ decision, posting a screenshot. The text in the snapshot stated, “Judge Torres repeated her belief that Ripple’s sales of XRP to retail clients via exchanges did not breach federal securities regulations.”

As a seasoned financial analyst with over two decades of experience in the industry, I have witnessed the evolution of digital assets and their increasing integration into mainstream finance. In my view, the recent ruling providing legal clarity for XRP is a significant step forward, particularly as it offers a clearer path towards potential ETF approval.

Kendrick, who oversees forex and digital asset research at our bank, expressed a positive outlook on the current state of affairs. He explained, “Though the market anticipates it happening in 2024, the approval process for this particular ETF might take longer due to multiple stages involved. Consequently, even if an application is submitted immediately, the decision could be postponed until next year.”

Kendrick proposed that the green light for Ether Spot ETFs indicates that the SEC views Ethereum as something other than a security. This idea might also apply to XRP and other digital currencies such as Solana, potentially leading to ETF launches by 2025. Notably, VanEck and 21Shares recently submitted applications for Solana Spot ETFs.

Political & Regulatory Front In US, Brazil

As someone who has been closely following the crypto market for several years now, I find the recent approval of the first-ever spot Solana ETF by the Brazilian Securities and Exchange Commission to be a significant milestone. This move sets a precedent that could potentially influence the United States Securities and Exchange Commission (SEC) to follow suit and approve other altcoin funds, such as Ethereum ETFs.

Additionally, there are reports that Vice President Kamala Harris may be leaning towards a pro-cryptocurrency stance, as she has scheduled significant meetings this month. This could mean that both the Democratic and Republican administrations might foster crypto development and adoption. Harris’s interest in cryptocurrencies appears to follow the pro-crypto stances taken by former President Trump and Robert F. Kennedy Jr.

XRP Lawsuit Final Verdict

In August 7, 2024, Judge Analisa Torres of the U.S. District Court mandated Ripple Labs to pay a $125 million penalty in connection with their legal dispute with the Securities and Exchange Commission (SEC). This ruling marks the end of a four-year-long court battle that has been a topic of interest within the cryptocurrency community. Maintaining her position from July 2023, Judge Torres upheld her previous decision.

The judge determined that Ripple’s method of selling XRP to regular customers through exchanges was not a breach of federal securities regulations. On the other hand, she concluded that Ripple’s direct sales of XRP to institutional investors were against these regulations, resulting in a significant fine.

As an analyst, I’ve been closely following the Ripple SEC lawsuit, and after a prolonged period of anticipation and postponements, we finally have a verdict. This decision, in my opinion, appears to be a balanced one considering the magnitude of the case at hand. The $125 million penalty, while significant, is substantially less than the initial demand of $1.9 billion by the SEC. Initially, the penalty consisted of a $1 billion disgorgement and prejudgment interest, along with a whopping $900 million in civil penalties.

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2024-08-08 12:43