Saha Swatilakha
The XRP community finds itself at a crucial juncture, as Ripple Labs, the entity behind XRP, anticipates a ruling in its prolonged legal battle with the U.S. Securities and Exchange Commission (SEC).
The lawsuit, which has been ongoing since December 2020, accuses Ripple of conducting an unregistered securities offering worth $1.3 billion through the sale of XRP tokens. The court’s decision, initially expected this month, remains pending, leaving investors in a state of anxious anticipation.
In the midst of this legal uncertainty, a recent poll conducted by a Ripple validator indicates that 65% of respondents believe an XRP Exchange-Traded Fund (ETF) could gain approval by 2025. This sentiment is echoed by prominent voices in the cryptocurrency community who see a favorable outcome in the SEC lawsuit as a potential catalyst for the approval of an XRP ETF.
Armando Pantoja, a well-known investor and futurist, shared his optimistic outlook on the lawsuit’s outcome. “I think there’s a 90% chance Ripple will prevail against the SEC, given recent regulatory developments with Bitcoin and Ethereum ETFs,” he told The Shib Daily. “A win could pave the way for an XRP ETF, paving the way to a $10-$20 XRP.”
Pantoja also highlighted the impact of XRP’s delisting and recent relisting by major exchanges like Coinbase, noting that the initial delisting significantly decreased demand and liquidity. However, he believes that the relisting will lead to a surge in demand, significantly boosting XRP’s price.
Coinbase’s decision to reinstate XRP trading for New York customers last week comes after a suspension that began in January 2021, triggered by the SEC lawsuit.
Brett Hill, an XRP and XLM investor, said that “many are confident that the XRPLedger will link all currencies using XRP as the bridge asset.” He emphasized the broader economic context, suggesting that with worsening inflation, investments in digital assets like XRP are crucial.
Hill also commented on the relisting of XRP by Coinbase, particularly for its New York customers, as a significant step toward improving the token’s liquidity and adoption. “The delisting and relisting of XRP by major exchanges have a significant impact on the token’s liquidity and adoption. These moves can create fluctuations in trading volumes and investor sentiment towards XRP,” he noted.
The reinstatement is seen as a compliance effort with New York’s stringent cryptocurrency regulations, including the BitLicense framework.
Coinbase’s Chief Legal Officer Paul Grewal highlighted the exchange’s efforts to work with state regulators, emphasizing the importance of regulatory compliance in facilitating XRP’s comeback.
As the XRP community awaits the SEC ruling, investors are also keeping a close eye on the potential approval of an XRP ETF in 2025. Such a development could significantly enhance the accessibility and legitimacy of XRP, potentially driving its value higher.
