Expert Says Grayscale XRP Trust Hints at Potential Settlement of SEC v. Ripple Lawsuit

Popular XRP community figure Luke Thomas believes Grayscale’s launch of an XRP Trusts suggests the SEC might be willing to settle with Ripple, paving the way for an XRP ETF and Ripple IPO. 

Recall that Grayscale launched its XRP Trust product yesterday, granting accredited investors direct exposure to the seventh-largest cryptocurrency. 

Although several XRP enthusiasts, like Ripple CEO Brad Garlinghouse, comended the move, others believe Grayscale might have vital information about the SEC v. Ripple lawsuit. 

Grayscale Re-launches XRP Trust Despite Appeal Rumors

For context, Grayscale terminated its previous XRP Trust in January 2021, a few weeks after the SEC charged Ripple with violating federal securities laws. The asset manager clearly stated that the Ripple lawsuit influenced the termination of the trust. At the time, Grayscale dumped its XRP holdings, distributing the cash proceeds to its shareholders. 

Despite Ripple securing a partial victory against the SEC last year, Grayscale refused to re-introduce the XRP Trust. However, the asset manager re-launched the Trust weeks after a New York district court issued the final verdict.

Expectedly, Grayscale’s decision surprised many due to speculations that the SEC or Ripple could appeal the court’s final judgment. As reported earlier, Ripple laid the groundwork for a potential appeal by establishing a trust with the SEC’s consent. Notably, the company transferred $138.75 million into it. 

The crypto payments company noted that the money will be released 30 days after the conclusion of an appeal or following the expiration of the deadline required to file an appeal notice. Currently, both the SEC and Ripple have less than a month to file a notice of appeal. 

Nonetheless, Grayscale ignored this development and proceeded to re-launch the XRP Trust. 

Potential Settlement of Ripple Lawsuit 

Notably, Grayscale’s action triggered speculations within the XRP community, with some enthusiasts noting that the move suggests that the Ripple lawsuit is close to a settlement. 

Specifically, prominent XRP fan Luke Thomas echoed this sentiment in a tweet, suggesting that Grayscale’s action signals the SEC’s willingness to accept the $125 million fine and settle the case. 

According to Luke, this resolution could lead to the launch of an XRP ETF or prompt Ripple to go public by 2025. The timeline aligns with a prediction from Ripple’s former director, Sean McBride, who expects an XRP ETF and IPO by 2025.  

XRP ETF and Ripple IPO 

A potential XRP ETF and Ripple’s IPO (Initial Public Offering) have elicited debates within the crypto community. Ripple is considering plans to go public through an IPO. However, the company has not made significant progress due to the lack of regulatory clarity in the U.S. 

Additionally, XRP’s dominance in the crypto market has fueled speculations that a top asset manager could launch an ETF tied to the coin. This speculation gained momentum after Grayscale re-launched an XRP Trust. 

However, the lawsuit between the SEC and Ripple stands as an obstacle to an XRP ETF and IPO. Both would require the SEC’s approval to move forward. 

If the SEC accepts the $125 million fine and settles with Ripple, the regulator might approve the launch of an XRP ETF or IPO when filed. The coming weeks would determine whether the lawsuit will end in a settlement or head to appeal.