Legal experts have recently confirmed that the ongoing lawsuit between the payment protocol Ripple and the US Securities and Exchange Commission (SEC) will not interfere with the approval process of an XRP exchange-traded fund (ETF). Despite concerns that the legal battle might cause delays in regulatory decisions, pro-XRP lawyer Jeremy Hogan has clarified that the two matters are not directly linked, and that the ETF approval process follows a structured timeline independent of the lawsuit.
According to Hogan, who responded to an inquiry on X, the ETF approval process typically spans eight to twelve months due to extensive regulatory steps, including S-1 filings. This timeline confirms the independence of the regulatory pathway for ETFs from the legal proceedings involving Ripple. Importantly, the lawsuit primarily addresses specific XRP sales by Ripple, and does not pose any legal barriers to ETF approval.
In fact, the SEC has previously allowed ETFs for assets that were under legal investigation, further confirming that the lawsuit against XRP does not impact ETF approval. The critical aspect of the case concerning the classification of XRP as a security was settled earlier, removing any legal hurdles to ETF approval.
In spite of the ongoing legal dispute, institutions have continued to express confidence in XRP. Nasdaq recently submitted a 19b-4 filing to the SEC for establishing XRP and Litecoin ETFs. Additionally, an S-1 filing at CoinShares, a necessary step for launching an ETF, indicates that financial institutions are increasingly interested in expanding their crypto investment options.
The developments have generated a positive response from the entire crypto market sector. The filings by Nasdaq are encouraging investors, indicating a rise in interest from institutional participants. Furthermore, reports suggest that Brad Garlinghouse, the CEO of Ripple, may lead a crypto advisory council proposed by former US President Donald Trump, further enhancing Ripple’s authority during regulatory exchanges.
Bloomberg analysts James Seyffart and Eric Balchunas have predicted that XRP requires 65% focused approval to meet the criteria for an ETF by 2025. They also predict that cryptocurrencies like Litecoin, Dogecoin, and Solana are showing growing probabilities of approval as regulatory frameworks for digital assets become clearer.
Despite the ongoing debate about XRP ETF approval, institutional adoption of cryptocurrencies is accelerating. The price of XRP rose by 3%, reaching a value of $2.50 after a 24-hour low of $2.41. With market sentiment turning bullish, XRP’s Futures Open Interest increased by 5%. Short-term market analysis suggests that the price of XRP may rise to $3, while long-term predictions suggest a potential rally to $6. As the world of cryptocurrencies continues to evolve, these developments underscore the importance of clear regulatory frameworks and the growing role of institutional investors.
