Crypto Market Awaits Ripple vs. SEC Verdict and XRP’s Fate

The legal battle between the SEC and Ripple continues to cast a shadow over the cryptocurrency market. Investors are anxiously waiting for the court’s decision on whether Ripple’s XRP sales to institutional investors violated US securities laws.
A potential loss for Ripple could result in a hefty fine and a court order (injunction) restricting them from further XRP sales to institutional buyers. The SEC has requested a $2 billion penalty and an injunction in their opening brief. This injunction could significantly hamper Ripple’s expansion plans within the US.
Even after a verdict, XRP’s future might remain clouded. The SEC is expected to appeal Judge Analisa Torres’ July 2023 ruling, which stated that XRP sales through automated programs (programmatic sales) don’t qualify as securities under the Howey Test.
The appeals process could further delay the approval of XRP-based exchange-traded funds (ETFs). With speculations of the SEC holding off on XRP-spot ETF applications, a summer verdict in the Ripple case could potentially push these approvals into 2025.
Despite the uncertainty, Ripple CEO Brad Garlinghouse recently expressed optimism about the future of XRP-spot ETFs, suggesting a potential first approval by 2025.