- The SEC officially dismissed its lawsuit against Ripple Labs which demonstrated changes in regulatory direction.
- After the legal resolution seven notable investment firms submitted applications for XRP ETFs to the SEC including Bitwise and Franklin Templeton.
- Ripple’s CLO highlights the need for updated, clear rules that protect consumers while supporting innovation.
The SEC v. The Ripple case shook the crypto world when it first emerged, exemplifying the regulatory problems blockchain projects were facing at that time. Following over four years of legal back-and-forth the Securities and Exchange Commission officially put an end to its case against Ripple Labs.As the case has ended, new doors are opening for Ripple and its XRP token. As of now there is a renewed sense of optimism around the potential approval of the U.S.-based XRP ETF.
The Need For Clarity in Crypto Regulation
Ripple’s Chief Legal Officer Stuart Alderoty explained that the SEC ceased its case against Ripple and withdrew enforcement actions against different crypto firms. As per his view the agency took this action because the agency realized the need for new digital asset regulations.
According to Alderoty, regulatory priorities include consumer protection, market security and misuse prevention while promoting innovative crypto developments that are not obstructed by outdated rules.
With Lawsuit Behind It, XRP Inches Closer to ETF Reality
Ripple lawsuit settlement has triggered rapid growth for XRP momentum. Nearly seven asset management firms have submitted XRP-based ETF proposals to authenticate them with U.S. regulators. Major financial companies Bitwise along with Franklin Templeton and 21 Shares have applied to U.S. regulators for approval to create spot XRP ETFs. In addition to spot XRP ETFs Grayscale and Volatility Share companies are working to develop trust conversions alongside leveraged and inverse fund offerings.
Source: (X)
The prediction market Polymarket displays 82% approval rate and Bloomberg analysts are even more optimistic claiming there is a probability of approval of 85%. Despite the optimistic outlook, XRP is currently trading at $2.21, reflecting a slight 0.4% decline on the day. However, discussions are on the horizon regarding the XRP’s digital financial development and the market seeks updated laws which will match the swift advancement of technology.
