XRP ETF Nears Reality as Ripple, SEC Pause Legal Fight

• Ripple and SEC pause appeal for 60 days to negotiate a settlement, potentially resolving their five-year legal dispute.
• Nate Geraci predicts imminent approval of a spot XRP ETF, citing favorable market and regulatory conditions.

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly requested a 60-day extension on their pending appeal to discuss settlement negotiations. The U.S. Court of Appeals for the Second Circuit granted the parties’ joint request on April 16, and requires that the parties provide an update to the Court by June 15. This development may represent a crucial turning point in their nearly five-year legal battle over XRP.

An Ongoing Controversy

Ripple was the subject of a lawsuit by the SEC in December 2020 for allegedly selling XRP as an unregistered security. In August 2024, a federal court determined that Ripple was liable in part, resulting in a $125 million penalty. Both sides filed an appeal, but new discussions that have taken place recently indicate that Ripple could be able to work a deal that would narrow the penalty and add clarity to XRP’s status.

XRP Exchange-Traded Fund looks promising

As that played out, hopes about a spot XRP exchange-traded fund (ETF) continued to climb. Nate Geraci, a leading ETF analyst, indicated that the regulators have few rational reasons to deny an XRP product at a time when crypto exchanges are going public. Geraci’s comments reflect a growing trend in terms of both investor interest and confidence in XRP becoming part of mainstream financial products.

The Regulatory Winds are Shifting

The regulatory winds appear to be shifting in terms of the SEC’s possible approach to crypto as the agency is now under different leadership. Paul Atkins, who was confirmed as SEC Chairman on April 9, appears to have a crypto-friendly perspective that replaces the more stern approach of Gary Gensler. This aligns with the dismissal of various enforcement cases regarding crypto as well as now it appears that Ripple and XRP may have a little wind in their sails.

Ripple’s Efforts

Ripple has also been actively engaging the new administration as it reportedly donated $50 million in XRP to the inauguration of President Trump. The CEO, Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have also attended several Trump-related events. These actions also correspond with the company’s decision to abandon its own cross-appeal which could allow Ripple to potentially get a $75 million refund from that fine.

The Market is Watching Closely

Investors and stakeholders will continue to watch the SEC, particularly because the outcome of a decision regarding an XRP ETF is consequential. An approval in the next few months could leverage the example of Bitcoin and Ethereum ETFs, accelerating the position of the cryptocurrency on the market, which would be tremendously beneficial for Ripple Labs, but until the SEC renders a decision regarding the ETF proposal, we won’t know. 

conclusion

Although there is no approval in sight, the lull in the legal battle is an optimistic marker for XRP. Settlement discussions are happening, and President Trump is ramping up the financial sector – there seems to be a growing possibility of U.S. markets being more welcoming of XRP, which could change its future.