SEC vs. Ripple and XRP-Spot ETF Prospects
A full approval and launch of an ETH-spot ETF could pave the way to an XRP-spot ETF market. SEC Chair Gary Gensler publicly labeled ETH as a security after the Merge. In July 2023, the US courts ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
Filings for XRP-spot ETFs could hinge on SEC plans to appeal against the Programmatic Sales of XRP ruling. The ongoing SEC vs. Ripple case is in its final stages. The parties await a court ruling on omnibus sealing motions, at which time the court can begin deliberations.
In July 2023, Judge Analisa ruled that Ripple breached US securities laws for failing to register XRP as a security in sales to institutional investors.
The SEC pursued an almost $2 billion penalty and an injunction, prohibiting Ripple from selling XRP to institutional investors. Ripple presented its rebuttal to the opening brief, arguing that the penalty should not exceed $10 million. Ripple anticipates a court ruling in the coming months.
The SEC can appeal against the Programmatic Sales ruling at the end of the case, a lingering XRP headwind.
From Monday (May 20) to Saturday (May 25), XRP was up 5.03% to $0.5347.
