XRP holders are becoming increasingly worried that the ongoing legal proceedings between the SEC and Ripple are exacerbating regulatory uncertainties in the cryptocurrency market. The lawsuit has raised concerns about its potential impact on the approval process for XRP-related ETFs. Legal experts emphasize that the progress of these processes is influenced by various factors, and the complex and lengthy regulatory procedures are affecting market expectations. As institutional applications gain momentum, there is consideration of the possibility of an XRP ETF approval by 2025.
In terms of the legal process, Jeremy Hogan, a legal expert, asserts that the Ripple case does not directly affect the ETF approval process for XRP. According to Hogan, the approval process for ETFs progresses independently, based on regulatory reviews rather than the developments in the lawsuit. Therefore, changes in the Ripple case do not have a direct impact on ETF approvals.
The lawsuit specifically focuses on whether Ripple’s sales of XRP qualify as securities. The SEC views Ripple’s sales on exchanges as unregistered securities transactions. However, previous rulings have suggested that XRP may not be considered a security.
Despite the legal uncertainties, market participants and institutions continue to submit ETF applications, with notable submissions from major firms such as Nasdaq. These institutions are making significant progress in the ETF approval process by submitting regulatory documents like S-1 forms. These developments have raised expectations among XRP investors.
Bloomberg analysts estimate a 65% likelihood of XRP ETF approval by 2025. Although this probability is lower compared to other cryptocurrencies, positive signs for XRP persist. Analysts point out that regulatory processes are proceeding cautiously, with approvals taking time. Investors remain vigilant, closely monitoring developments and the approach of regulatory bodies.
