The SEC has filed a Notice of Appeal in its ongoing legal battle against Ripple Labs and its executives, Bradley Garlinghouse and Christian Larsen. This appeal halts progress on Bitwise’s proposed XRP ETF, casting doubt on its future.
On September 30, 2024, just days before the SEC’s deadline to appeal, Bitwise filed for the first-ever spot XRP ETF. The ETF would have exposed institutional and retail investors to XRP in a regulated setting. However, with the SEC now questioning the court’s decision on August 7 in favor of Ripple, the future of the XRP ETF is unknown.
SEC Appeal Pushes Ripple Case to Court of Appeals, XRP’s Future Unclear
The court’s final judgment in Ripple’s favour ruled that XRP is not a security, allowing it to be traded freely. This was considered a victory for Ripple and the overall crypto business. However, the SEC’s appeal places that victory on hold, and once again, XRP’s status is questioned.
Analysts said the SEC’s appeal may keep the ETF approval in the grey area forever. Alex Thorn, the Head of Research at Galaxy Digital, had earlier noted that the possibility of a successful XRP ETF would be reduced to “close to zero” in the case of the appeal. However, the legal issue in the case is still ongoing. It is expected to go up to 2025, which means that the regulatory status of XRP is still unknown.
As the case moves to the U.S. Court of Appeals for the Second Circuit, Ripple’s legal story continues to unfold. XRP’s current legal status can shift its market and any product linked to it, such as the Bitwise ETF.
The Ripple case has become one of the most significant legal trials in the cryptocurrency sphere. Ripple and the SEC are preparing for a lengthy trial, and investors must wait for the verdict.
Due to legal uncertainty, the Bitwise XRP ETF or similar XRP financial products will take some time to come to the market. In this case, the decision is expected to set the direction for the future of XRP and the rest of the crypto market.
