Ripple’s Legal Battle Rages—But XRP ETF Dreams Are Very Much Alive

The SEC vs. Ripple showdown enters its fifth year—and Wall Street still can't quit XRP.

Why ETFs matter now more than ever

While lawyers argue over what constitutes a security, BlackRock and Fidelity keep eyeing crypto's most controversial asset. An XRP ETF would force traditional finance to swallow its own hypocrisy—the ultimate 'if you can't beat them, join them' moment for institutional investors.

The regulatory paradox

Every delay in the case makes XRP more attractive as a bet against the SEC's crumbling authority. The token's survived delistings, FUD campaigns, and even Brad Garlinghouse's terrible 2020 haircut—what's another few quarters of legal purgatory?

Funny how the 'unregistered security' narrative collapses when asset managers smell fees. Welcome to modern finance: where principles are flexible, but profit margins are sacred.

TLDR

• Judge Torres rejected a joint motion from Ripple and the SEC, extending the lawsuit that began in 2020.
• XRP lost over $2 billion in market cap within 24 hours following the court decision.
• Legal expert Fred Rispoli stated that the ruling does not impact XRP’s status in the secondary market.
• Rispoli believes the XRP ETF remains viable despite the injunction relating only to institutional sales.
• Ripple is labeling past violations as historic institutional sales to show changes in its current practices.

A new legal development has reignited concerns around Ripple’s ongoing battle with the SEC and its potential impact on the XRP ETF. Judge Torres recently denied a joint motion, which has extended a lawsuit that began in 2020. This MOVE immediately triggered a sharp decline in XRP’s market cap, wiping out over $2 billion within 24 hours.

The market reaction was swift, but legal perspectives offer a broader view. Fred Rispoli, a pro-Ripple attorney, believes the ruling does not threaten the possibility of an XRP ETF. Despite the negative headlines, the court’s decision does not alter XRP’s current regulatory standing in the secondary market.

Rispoli maintains that the court’s decision involves institutional sales, not secondary market trading. He argues that this distinction means the XRP ETF path remains open. According to his analysis, the injunction’s relevance depends on how the SEC chooses to enforce it.

XRP ETF Stays Viable Amid Legal Shifts

Rispoli emphasizes that the SEC could choose to ignore or waive enforcement tied to the institutional injunction. Therefore, the XRP ETF effort remains legally viable, even if procedural hurdles continue. This interpretation keeps Ripple’s position relatively stable despite the extended litigation.

Meanwhile, Ripple has begun reframing past regulatory issues as “historic institutional sales,” signaling operational adjustments. These changes suggest Ripple aims to comply with expected regulatory reforms and shift away from past conduct. Legal teams appear focused on separating current sales from earlier violations.

Settlement discussions between Ripple and the SEC may also be progressing quietly behind the scenes. Observers note that a reduced penalty and compliance reforms could finalize a resolution. This WOULD preserve Judge Torres’ summary judgment while easing regulatory tension around the XRP ETF issue.

ETF Analysts Remain Confident in Approval Odds

Despite recent courtroom setbacks, ETF analysts see no regulatory blockade for a spot XRP ETF. Bloomberg’s Eric Balchunas and James Seyffart have projected over 90% approval odds for XRP, Solana, and Litecoin ETFs. Their analysis points to increasing SEC engagement with ETF applicants.

Such projections strengthen the outlook for the XRP ETF even amid unresolved litigation. Analysts suggest the SEC’s stance may be evolving under new leadership and broader market conditions. If accurate, the delay in the final verdict may not slow ETF approval.