The long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be drawing to a close soon, according to legal expert Jeremy Hogan.
Hogan, a prominent attorney who has closely followed the case, recently suggested that the lawsuit is likely to be settled before the approval of an XRP exchange-traded fund (ETF).
He clarified that this outcome isn’t based on any legal requirement but on the fact that ETF approvals generally take longer due to extensive regulatory processes.
Hogan’s comments have reignited speculation among investors, who are eager to see how a favorable resolution for Ripple could impact XRP’s market value and broader market dynamics.
A Ripple Victory Could Revolutionize the Crypto Market
The case, which began in December 2020, hinges on whether XRP should be classified as a security under U.S. law.
If Ripple were to win or reach a settlement in its favor, it could have profound implications for the entire cryptocurrency market.
A ruling that XRP is not a security would remove the regulatory uncertainty surrounding the token, boosting investor confidence.
Moreover, such a decision could set a precedent for other blockchain projects currently facing similar legal challenges.
A favorable ruling for Ripple might also attract institutional investors who have been cautious due to the unclear regulatory status of XRP, potentially triggering a sharp surge in its price.
Also Read: Ripple VS SEC: Regulator Seeks Reversal of Judgment in Ripple Case; XRP Plunges 3%
Delays in XRP ETF Approval Despite Legal Developments
While the potential for a Ripple victory excites investors, legal expert Hogan pointed out that the approval of an XRP ETF will likely take much longer, even if Ripple wins its lawsuit.
Unlike the relatively straightforward settlement of a legal dispute between Ripple and the SEC, the approval process for an ETF involves a rigorous review by various regulatory bodies to ensure compliance with market and investor protection standards.
These regulatory complexities mean that, even with a favorable legal resolution for Ripple, an XRP ETF launch could still be many months or even years away.
However, if Ripple prevails in its lawsuit, it could expedite ETF discussions and increase pressure on the SEC to approve an XRP ETF sooner rather than later.
Investor Sentiment and Broader Market Reactions
Recent developments in the Ripple-SEC case have already begun to influence investor sentiment, with many analysts speculating that a positive resolution for Ripple could trigger a substantial price surge for XRP.
Regulatory clarity often opens the door for institutional adoption, and a victory or settlement favorable to Ripple could significantly boost confidence in XRP.
Additionally, such an outcome might reignite broader debates around the classification and regulation of cryptocurrencies in the U.S., potentially reshaping the regulatory landscape for the entire sector.
XRP holders, along with the broader cryptocurrency community, are watching the legal proceedings closely, as the outcome will not only affect Ripple’s future but could also set critical precedents for how other cryptocurrencies are regulated moving forward.
Other Key Developments in the Ripple-SEC Lawsuit
The Ripple-SEC case has seen several significant developments in recent months. Following a court ruling in favor of Ripple, the SEC formally filed an appeal, challenging the preliminary decision that XRP is not a security when sold to the public.
The appeal has added further complexity to the already drawn-out legal battle.
Additionally, Ripple has launched a petition to halt the SEC’s final judgment appeal, arguing that the regulator’s actions harm investors and destabilize the cryptocurrency market.
Critics of the SEC’s approach argue that the ongoing litigation has created unnecessary uncertainty for investors, while also highlighting concerns about the regulator’s broader strategy toward cryptocurrency regulation.
These events continue to shape the ongoing narrative surrounding Ripple’s legal fight and its future in the cryptocurrency space.
Also Read: Ripple Secures Key Money Transmitter Licenses In New York & Texas, Expanding Global Payment Reach