Full SEC Litigation Timeline and XRP ETF Outlook

The Ripple vs SEC case ends after almost five years of legal battle. This groundbreaking case could shape the future of XRP ETF approval. It has boosted market confidence and encouraged institutional interest in a more clear regulatory environment.

Several major asset managers, including Grayscale, Bitwise, and WisdomTree, have already submitted XRP ETF applications. Now there is growing speculation that BlackRock could soon enter the market.

Ripple vs SEC case timeline

The Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple Labs, along with CEO Brad Garlinghouse and co-founder Chris Larsen. It accused the company of selling $1.3 billion worth of XRP tokens without registering as securities.

Ripple rebutted and challenged it in a motion to dismiss the SEC statement, claiming that XRP is a currency rather than security. Additionally, the court granted the SEC’s motion to extend the deadline for discovery in June, allowing the SEC to increase the time it took to prepare internal documents.

The judge has determined that the SEC should not withhold Hinman’s documents and can provide important insights into the SEC’s views on Bitcoin and Ethereum.

The US District Court ordered the SEC to hand over the Hinman documents. This included internal SEC communications, including emails and drafts surrounding the 2018 speech by William Hinman, then Director of the SEC’s Corporate Finance.

Judhe Analisa Torres has determined that the institutional sale of XRP in relation to Ripple’s public exchange is not in violation of the Securities Act. However, she found that sales totaling $728 million was against the rules.

The court stage went on, focusing on testimony, financial documents and relief. Ripple has filed the audited financial statements ordered by the court,

Both the SEC and Ripple have removed the respective appeals of Judge Torres’ 2023 ruling. Complete the case effectively.

The parties agreed to a settlement and sought to cut a $125 million fine against Ripple. However, the judge refused, emphasizing that Ripple must continue to comply with securities laws despite a change in the SEC’s focus.

Ripple has agreed to pay the SEC a $125 million fine as part of a settlement that ended a long-term legal battle. Of that, $50 million will be sent to the US Treasury, but the $75 million that had been escrow since June will be returned to Ripple.

The decision follows a mixed verdict that XRP is not considered security when sold on public exchanges with retail investors, but is treated as security for direct institutional sales.

What are the main crypto influencers saying about this?

Ripple’s legal officer Stuart Aldeoty said the incident is now behind them and Ripple can once again focus on business. He said in X: “Following today’s committee vote, the SEC and Ripple filed directly with the Second Circuit to dismiss their appeal. Finished…and now we’re back in business.”

Currently, Bloomberg experts Eric Balknas and James Seyfert hold the odds of 95% for the XRP ETF approval despite Commissioner Caroline Crenshaw’s opposition to the Crypto ETF approval.

What’s next? Focus on XRP ETF approval

The end of the SEC lawsuit against Ripple quickly changed market sentiment as the odds for the XRP ETF approval rose to 77%. The conclusion of the legal battle addressed the uncertainty of XRP and removed obstacles from the pathway of ETF approval.

With clarity of regulations and new market confidence, XRP prices also skyrocketed, reaching $3.30. Within 24 hours, XRP rose by about 11%, rising from $2.99 to $3.30. This price rise has brought XRP back to over $180 million.

Is BlackRock applying for an XRP ETF?

On August 8th, speculations about the BlackRock application for the Islands XRP Trust intensified. Investors and the ETF community had expected the SEC vs Ripple conclusion to fuel the XRP ETF application of other major companies.

The president of ETF store Nate Geraci mentioned the litigation, saying, “Yes, I think BlackRock was waiting for this to be seen before filing it with the Ishares XRP ETF. If it’s wrong, I own it.”

However, BlackRock denied speculation, and a company spokesman told Bullock, “At this time, BlackRock has no plans to file an XRP or Sol ETF.”