Legal experts expect the legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) to be settled before the approval of the XRP exchange-traded fund.
Which will come first?
Despite the changes in SEC leadership, the case has been ongoing since the lawsuit was filed in December 2020, which accused Ripple of conducting an unregistered securities offering by selling XRP.
While the company has achieved some partial victories, the case has continued after the SEC appealed a ruling in 2023.
Lawyer Jeremy Hogan indicated that the settlement could happen in the coming months, likely before the potential approval of an XRP ETF, as the regulatory process takes longer.
XRP ETF Developments:
Major companies such as Grayscale, WisdomTree, Bitwise, and 21Shares have expressed their intention to launch an XRP ETF in the U.S.
According to Bloomberg analyst James Seyfart, the likelihood of approval before the end of 2025 is 65%, with the SEC potentially acknowledging some of the filings this week.
But Hogan explained that the process could take 8-12 months.
Is a settlement imminent?
In a dramatic move, Binance and the SEC have requested a 60-day suspension of their lawsuit, sparking optimism in the XRP community that the Ripple-SEC dispute could also be resolved.
With Mark Ueda as the new SEC chairman, there could be a change in the regulatory approach, especially since he has a more open stance towards cryptocurrencies than his predecessor, Gary Gensler, who was known for his hostility to the cryptocurrency sector.
