Two major events involving Ripple's XRP token inch closer to resolution

Starting in December 2020, the SEC's case against Ripple Labs contends that the company sold XRP tokens, therefore engaging in unregistered securities offers.

Two major events involving Ripple’s XRP token are inching closer to resolution—the continuous legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) and the possible approval of XRP-oriented Exchange-Traded Funds (ETFs). These developments have the landscape of cryptocurrencies humming with expectation as these changes could have a big impact on XRP’s price and place in the larger financial system.

Legal Drama Unfolding: Towards a Resolution in Sight

The SEC’s case, which began in December 2020, claims that Ripple sold XRP tokens illegally in an unregistered securities offering over a period of several years. This lawsuit has largely engrossed the crypto sector as it bears on the classification and regulation of digital assets within the U.S.

Recently, there have been strong suggestions that a settlement might be nearer than previously thought. According to reports, the SEC is now considering dropping its appeal in the Ripple case. Internal discussions at the agency appear to be focused on categorizing XRP as a commodity instead of a security.

This categorization would align XRP with assets like gold or oil, which would render it subject to less stringent regulatory oversight compared to securities. Furthermore a critical hearing is scheduled for 16th April, 2025. By this time, Ripple is expected to submit its reply brief to the SEC, addressing the remaining allegations and setting the stage for a potential decision.

XRP ETFs Await Approval

Concurrently with the unfolding judicial processes, the community of crypto investors is keenly observing the status of ETFs with an emphasis on XRP. Nine companies—including prominent asset managers Grayscale, Bitwise, ProShares, and Franklin Templeton—had applied with the SEC to launch XRP ETFs by 12th March, 2025.

These financial instruments aim to provide both institutional and individual investors with controlled exposure to XRP, increasing its accessibility and potentially leading to greater market liquidity. In a relevant move, Grayscale has applied to convert its existing XRP Trust into an ETF, showcasing a response to shifting investor preferences and the evolving regulatory landscape.

For these purposes, the SEC has adopted a cautious yet generally favorable attitude. Although no licenses have yet been granted, the agency’s acceptance of the submissions and the overall pro-crypto stance of the current administration have fueled speculations that approvals could be forthcoming. President Donald Trump’s recent establishment of a Bitcoin Strategic Reserve, which includes XRP, further underscores the administration’s supportive attitude toward digital assets.

Market Implications: Soaring Value for XRP

The market value of XRP could experience a surge with the occurrence of both a favorable legal outcome in the case and the approval of XRP ETFs. Analysts anticipate that these events could trigger a significant influx of institutional money, increasing demand and impacting XRP’s price.

Some projections indicate that XRP could achieve a market capitalization of $200 billion. This level of institutional demand would be realized should the SEC permit the launch of ETFs and institutions invest in cryptocurrencies to an extent last seen with the introduction of Bitcoin futures in early 2024.