Ripple vs. SEC Nears Final Ruling – How Will It Impact XRP?

• Recent developments suggest a potential shift in the SEC’s approach to cryptocurrency regulation, bringing us closer to a final ruling in the Ripple case.
• If Ripple secures a victory, we could see new bank partnerships, CBDC and stablecoin expansion, and even potential discussions around an XRP ETF approval.

The prolonged legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is nearing a crucial turning point, with potential consequences for XRP, Ripple’s native cryptocurrency. Since the lawsuit began in December 2020, the SEC has alleged that Ripple conducted unregistered securities offerings through XRP sales, an accusation Ripple has consistently denied, arguing that XRP is a digital currency, not a security.

 A favorable ruling for Ripple could provide regulatory clarity for the broader market, while an unfavorable outcome may lead to further legal and financial hurdles. As CNF highlighted earlier, the SEC closed investigations into Robinhood, Coinbase, and Gemini, signaling a possible shift in its regulatory approach. This has led many to question whether the agency might take a similar stance with Ripple under the new SEC leadership.

Market Speculations and Projections

In a detailed thread on X All Things XRP outlined several key developments that could unfold if Ripple secures a favorable ruling. Ripple’s recent share buybacks valued the company at $11.3 billion, fueling speculation that an initial public offering (IPO) could be on the horizon. With legal uncertainties resolved, Ripple may move forward with a public listing, providing early investors liquidity while significantly expanding the company’s market presence. 

According to All Things XRP, Ripple already has over 300 banking partners worldwide, but legal uncertainties may have delayed partnerships with financial institutions. Despite this, several banks, including Banco Rendimento in Brazil, SBI Holdings in Japan, and Santander in Spain, are already utilizing Ripple’s technology for cross-border transactions.

With the lawsuit nearing its conclusion, the door would open for financial players like Bank of America, American Express, and Santander to officially integrate with RippleNet.

CBDC & Stablecoin Expansion

As traditional banks explore blockchain solutions, Ripple’s On-Demand Liquidity (ODL) service and cross-border payment technology could make it a top choice for financial institutions seeking to enhance settlement efficiency.

Ripple has been actively exploring Central Bank Digital Currencies (CBDCs) through multiple pilot programs worldwide. One of its key initiatives is a collaboration with Colombia’s central bank, Banco de la República, and the Ministry of Information and Communications Technologies (MinTIC) to test the feasibility of a CBDC on the XRP Ledger (XRPL). This pilot aims to assess blockchain technology’s potential for fast, secure, and cost-effective payments, particularly in areas like government transactions and financial inclusion.

An XRP ETF – Is It Finally Possible?

The XRP community has remained resilient and loyal through years of legal battles. The expert suggested that Ripple could reward its loyal supporters with exclusive events, giveaways, and developer incentives to further drive XRPL adoption. According to All Things XRP, regulatory clarity following a Ripple court victory could pave the way for institutional adoption, making an XRP-based exchange-traded fund (ETF) a reality.

Institutional interest in XRP ETFs is growing, with 18 filings submitted to the SEC by key players such as Bitwise, Grayscale, 21Shares, Canary Capital, and WisdomTree. As we previously reported, approval of these ETFs could unlock massive institutional investment, potentially pushing XRP past key resistance levels at $5 and $10. Currently, XRP is trading at $2.32, reflecting a 2.57% increase in the last 24 hours and a 6.27% gain over the past week.