đŁ SEC files appeal in Ripple case, putting XRP ETF on hold
The SEC has officially filed a Notice of Appeal in its legal battle against Ripple Labs and its executives, Bradley Garlinghouse and Christian Larsen.
This move effectively halts progress on the recently proposed XRP ETF by Bitwise, casting doubt on its future.
Bitwise filed for the first-ever spot XRP ETF on September 30, 2024, just days before the SECâs deadline to appeal the court ruling in favor of Ripple. However, with the SEC now challenging the final judgment from August 7, 2024, the legal battle over whether XRP is considered a security is far from over.
The SECâs appeal could extend Rippleâs legal saga well into 2025, creating a cloud of regulatory uncertainty over XRP and any financial products associated with it.
The final judgment in the Ripple case had ruled in favor of Ripple Labs, allowing XRP to be traded without being classified as a security. This was seen as a significant victory for Ripple and the wider crypto industry. However, the SECâs decision to appeal the ruling has put that victory on hold, with XRPâs status once again in question.
Alex Thorn, Head of Research at Galaxy Digital, had previously warned that an SEC appeal would significantly reduce the likelihood of a successful XRP ETF, stating that the chances would drop to ânear zeroâ if the appeal were filed.
Bitwiseâs spot XRP ETF was expected to offer institutional and retail investors exposure to XRP through a regulated financial product. Now, with the SECâs appeal, the ETFâs approval process is likely delayed indefinitely.
The ongoing legal battle will likely keep XRPâs regulatory statusâand, by extension, its market performanceâuncertain for the foreseeable future, as the court case heads to the U.S. Court of Appeals for the Second Circuit.
The Ripple case has become one of the most significant legal battles in the crypto world, and the SECâs appeal only adds more complexity.
