Ripple vs. SEC Endgame – How Will the XRP ETF Shape Up After Delay?
2025-03-13
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is entering its final stages, yet the resolution remains uncertain.
With a $125 million fine and a permanent ban on institutional XRP sales still under discussion, Ripple’s legal team is actively pushing back against what they perceive as unjust penalties.
Meanwhile, the SEC has delayed its decision on a Grayscale XRP ETF, further complicating the landscape for investors and institutional players.
As the crypto industry watches closely, the outcome of Ripple’s case could set a crucial precedent for digital asset regulation in the U.S. and influence the future of XRP adoption.
The emergence of multiple XRP ETF applications and shifting political dynamics add further intrigue to an already complex situation.
With new leadership at the SEC and growing institutional interest in XRP-based financial products, the question remains—will Ripple finally emerge victorious, and how will this shape the future of XRP in the global financial system?
The Final Stretch in the Ripple vs. SEC Legal Battle
The long-running legal battle between Ripple and the SEC appears to be nearing its conclusion, but the resolution is anything but straightforward.
A $125 million fine and a permanent ban on institutional XRP sales remain unresolved points of contention.
Ripple’s legal team is actively pushing back against these terms, extending negotiations as they seek a more favorable outcome.
According to journalist Eleanor Terrett, sources close to the case suggest that the delay is due to Ripple’s refusal to accept the August ruling, which would effectively mean admitting to wrongdoing.
However, the SEC itself, under its evolving leadership, now appears uncertain about whether Ripple’s past actions were truly unlawful.
With recent SEC enforcement actions against Coinbase, Kraken, and Gemini reaching settlements, Ripple is questioning why it continues to face harsher consequences.
This lack of a clear precedent may be contributing to the extended legal process, as both sides struggle to define an outcome that aligns with the agency’s shifting stance on cryptocurrency regulation.
Also read: XRP Price Prediction for 2040 - How high could XRP go by 2040?
The SEC’s Delays in Approving an XRP ETF
As Ripple’s legal battle nears its conclusion, the SEC has also slowed progress on a potential Grayscale XRP ETF. A recent filing confirms that the agency requires “a longer period” to determine whether the ETF will be approved.
The 45-day initial review window is expiring, but the SEC has the authority to extend its final decision until October. The next major deadline to watch is May 21, when regulators will likely provide an update on their stance.
Meanwhile, the race to launch an XRP ETF is heating up. Franklin Templeton has now joined a growing list of firms, including Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares, in applying for an XRP-based exchange-traded fund.
This movement follows the massive success of spot Bitcoin ETFs, which have collectively amassed nearly $100 billion in assets.
The Impact of a Pro-Crypto Administration
The changing political landscape in the U.S. could significantly influence XRP’s future. With Donald Trump returning to the presidency, some analysts predict that his administration will take a more favorable stance toward cryptocurrency regulation.
Under former SEC Chairman Gary Gensler, Ripple faced aggressive legal action, with the agency arguing that XRP sales violated securities laws.
However, with new leadership at the SEC, the regulatory environment appears to be shifting, providing the crypto industry with greater flexibility.
Ripple CEO Brad Garlinghouse has previously stated that an XRP ETF in the U.S. is “inevitable,” citing growing demand from both institutional and retail investors.
However, the timeline for approval remains uncertain as the SEC’s position on XRP continues to evolve.
Also read: XRP Price Prediction for the Second Week of March 2025 - XRP Crypto Summit Impact
Conclusion
While Ripple’s battle with the SEC is approaching its final chapter, the negotiations are far from simple. The company’s resistance to an unfavorable settlement and the SEC’s internal uncertainty are causing further delays.
Meanwhile, the push for an XRP ETF is gaining momentum, but regulatory hurdles remain. The next few months will be crucial in determining both the legal outcome for Ripple and the broader adoption of XRP in institutional investment products.
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FAQs
1. What is the current status of the Ripple vs. SEC lawsuit?
The legal battle is in its final stages, with ongoing disputes over a $125 million fine and a potential ban on institutional XRP sales. Ripple is pushing back against these penalties, prolonging negotiations.
2. Why has the SEC delayed its decision on the Grayscale XRP ETF?
The SEC cited the need for a longer review period before approving an XRP ETF. The next deadline for a decision is May 21, but final approval could be extended until October.
3. Which companies have applied for an XRP ETF?
Firms such as Franklin Templeton, WisdomTree, Bitwise, CoinShares, 21Shares, and Canary Capital have submitted applications, signaling growing institutional interest in XRP-based financial products.
4. How could a pro-crypto administration impact XRP’s future?
A more favorable regulatory stance under a new administration could lead to clearer guidelines for XRP and increase the chances of ETF approval, boosting institutional adoption.
5. Will an XRP ETF be approved in 2025?
While Ripple’s CEO believes an XRP ETF is “inevitable,” the timing depends on ongoing regulatory developments and the SEC’s final stance on the asset’s classification.
Disclaimer: The content of this article does not constitute financial or investment advice.
