Despite investors’ concerns about regulatory approval, a prominent legal expert denies that the Ripple vs SEC case affected the XRP ETF’s approval.
Many investors have speculated on the potential impact of the XRP litigation on the approval of the XRP ETF, which has been one of the most heated topics. Nevertheless, a prominent attorney clarified that the Ripple Vs SEC case is unlikely to affect the approval process, citing various reasons. Although it is widely believed that the lawsuit could postpone regulatory clearance, the legal expert elucidates why this is not the case.
In the interim, Nasdaq initiated listing applications for Litecoin and XRP ETFs, indicating a heightened optimism within the cryptocurrency sector. Here is the connection between these developments and what to anticipate.
The ETF approval process is unlikely to be influenced by the XRP lawsuit.
The ongoing XRP lawsuit’s impact on the XRP ETF approval process has recently been discussed, and a prominent legal expert has recently provided his perspective. For context, a pro-XRP lawyer, Jeremy Hogan, was recently questioned by an XRP enthusiast on X about the potential for an ETF approval before the conclusion of the litigation. The user inquired whether the US Securities and Exchange Commission would authorize an exchange-traded fund (ETF) during the ongoing legal dispute with Ripple.
In response, Hogan stated that it is probable that a Ripple SEC case resolution will occur before the approval of an XRP ETF. Nevertheless, he underscored that the two are not inextricably connected and that his prediction is based on the fact that ETFs typically require a longer execution time due to the extensive regulatory processes.
In the interim, an additional user observed that the initial ETF application was submitted on October 24 and inquired whether approvals typically take four to six months. Jeremy Hogan acknowledged the timeline but clarified that the approval process includes additional stages, such as S-1 filings, which could extend the timeframe to eight to twelve months.
The US SEC is no longer a hindrance to the approval of the XRP ETF.
The ongoing XRP lawsuit’s primary focus is the specific XRP transactions by Ripple on exchanges. Jeremy Hogan, a lawyer who advocates for XRP, has confirmed that the case contains no legal obstacles that would preclude an XRP ETF from being approved. He observed that the most critical legal issue concerning whether XRP is classified as a security has already been resolved.
This implies that the US SEC may authorize an ETF in defiance of the ongoing Ripple Vs SEC lawsuit. Additionally, the agency has previously authorized such investment instruments for assets under legal review, suggesting no legal obstacles to implementing an ETF.
Optimism Increases Despite Ongoing XRP Lawsuit
Recent developments have reignited market optimism despite the XRP litigation being advanced under the former SEC Chair, Gary Gensler, dampening market sentiment. The increasing confidence of institutions and investors in the asset is evidenced by the flurry of participants who have submitted applications for the XRP ETF approval.
Nasdaq recently submitted a 19b-4 form to the US SEC, proposing listing CoinShares XRP and Litecoin ETFs for context and information. As the filing indicates, Nasdaq intends to list the ETFs under its Commodity-Based Trust Shares rule.
Concurrently, this occurs after CoinShares submits an S-1 form, a prerequisite for the ETFs’ launch. These filings suggest that institutional interest in crypto ETFs is rising, leading to a recent rally in altcoins.
Additionally, recent reports indicate that Brad Garlinghouse, the CEO of Ripple, may be appointed to the board of the crypto council under President Trump. Ripple’s market position could be further enhanced if this development occurs.
Is the approval of the XRP ETF imminent in 2025?
The probability of the XRP ETF being approved has been discussed by Bloomberg analysts James Seyffart and Eric Balchunas. According to their projections, there is a 65% likelihood of an ETF being approved in 2025. Nevertheless, the approval probabilities of Litecoin, Dogecoin, and Solana are even more significant, with 90%, 75%, and 70%, respectively.
Nevertheless, the XRP ETF debate is acquiring momentum as institutional adoption increases and legal clarity improves. Additionally, investors apprehensive about the XRP lawsuit’s potential impact on the ETF’s approval have received solace from the legal expert’s recent statement. That said, XRP has emerged as a significant contender in the list as the odds of crypto ETFs acquire momentum.
It is essential to acknowledge that these developments have also contributed to the current increase in the price of XRP. The cryptocurrency experienced a 3% increase in value during the writing process, rising from its 24-hour nadir of $2.41 to $2.50. The favorable market sentiment was also reflected in the asset’s Future Open Interest, which increased by 5%.
Additionally, many analysts anticipate that Ripple’s native cryptocurrency could experience a significant price increase to $3 if it maintains its critical support. However, experts also predict that the asset may experience a rally to $6 in the future, as evidenced by the conclusion of the Ripple SEC case and the approval of the XRP ETF.
