Ripple’s Lawsuit with SEC May Lead to Settlement Before ETF Launch
The cryptocurrency market is seeing some exciting developments as legal cases surrounding cryptocurrency companies have begun to be removed. This shift in legal uncertainty could pave the way for new financial products such as exchange funds (ETFs) and the future of these assets.
Legal struggle
Several SEC cases that once concealed the future of popular cryptocurrencies have been removed, eliminating a lot of uncertainty on assets such as XRP, Solana and Cardano. Due to the issues with these cases, as mentioned earlier, the question of whether these coins are securities (in the cases of Robinhood, Coinbase and Kraken) is now less urgent.
Bloomberg ETF analyst, James Seyffart, In an interview with Crypto, it was explained that these cryptocurrencies were once mentioned directly in the SEC case, thus allowing them to communicate with their unregistered stock exchanges. As these legal challenges disappear, these coins now have more obvious avenues to participate in future financial products.
XRP’s complex legal path
Although XRP is not completely free from legal issues, its situation is even more complicated. The direct lawsuit between Ripple and the SEC is still ongoing, and the outcome of this case can determine whether XRP can participate in ETFs or other financial products. Although Ripple won some parts of the case and others appealed, Seyffart believes that despite the complexity of its legal status, the XRP ETF could still be a powerful possibility in the future.
“XRP is a little different because their direct litigation between the ripple and the SEC may need to be classified before you can see the ETF there. I think it’s a little different, too, because I don’t know that this will be exactly like some others. There may be some sort of solution. I don’t know who knows how it will actually work,” he said.
The future of XRP futures
When the market is expecting the possibility of XRP futures, Seyffart notes that although XRP futures do not exist yet, they may be rolling out soon, especially as legal barriers decrease. He stressed that on-site products, including ETFs that directly hold these cryptocurrencies, may be the most successful products on the U.S. market.
