SEC's XRP ETF Acknowledgment Sparks Ripple Lawsuit Reconsideration

The U.S. Securities and Exchange Commission (SEC) may be reconsidering its appeal against Ripple, according to a crypto pundit. XRPcryptowolf, a strong XRP advocate, suggested that the SEC's recent acknowledgment of Grayscale's XRP ETF filing could indicate a potential reversal of the regulator's stance in the ongoing lawsuit against Ripple.

Grayscale Investments, a leading cryptocurrency asset management firm, previously filed for an XRP ETF. If approved, the ETF would widen XRP's appeal to traditional investors, potentially driving up demand and price. Fox Business journalist Eleanor Terrett reported that the SEC has acknowledged Grayscale's filing, a procedural step that indicates the regulator's willingness to review the proposal.

Following Terrett's report, Ripple CEO Brad Garlinghouse commented, "I recall pointing out – more than once – that this was inevitable." Garlinghouse has previously described XRP ETFs as inevitable, and now these products are closer than ever to approval.

Building upon these developments, XRPcryptowolf interpreted the SEC's acknowledgment of Grayscale's XRP ETF filing as a potential indicator that the regulator might reconsider its legal stance against Ripple. He stated, "Looks like the SEC will be reversing the XRP lawsuit appeal," suggesting that the regulator's willingness to engage with XRP-focused financial products could lead to a reassessment of its ongoing legal battle against Ripple.

The SEC filed its lawsuit against Ripple in December 2020, alleging that the company conducted unregistered securities offerings by selling XRP tokens. The court ruled in July 2023 that the digital asset is not a security and non-institutional token sales were not securities offerings. A few months after the final ruling in August 2024, the SEC appealed the case. However, with a new presidential administration and a pro-crypto acting SEC Chair, the regulator may have other plans. Dismissing this lawsuit would pave the way for proper regulation instead of multiple endless legal battles.