SEC May Postpone XRP ETF Debut Amid Ongoing Developments
The prospect of an XRP ETF debut in the U.S. could be facing delays as the SEC considers its options following recent legal rulings involving Ripple Labs.
Current Situation
Bitwise recently filed for an XRP ETF with the Delaware Division of Corporations, establishing a trust prior to the SEC registration. Bitwise’s CIO, Matt Hougan, confirmed the filing, with further details expected soon. However, the SEC's potential appeal of Judge Analisa Torres' recent ruling poses a significant risk to the ETF's prospects.
Legal Context
Judge Torres imposed a $125 million penalty on Ripple, significantly less than the $2 billion initially sought by the SEC. The ruling also clarified that public exchange sales of XRP do not constitute securities transactions, though institutional sales might. If the SEC appeals this decision, it could drastically diminish the chances of XRP ETF approval.
Industry Insights
Ripple Labs CEO Brad Garlinghouse previously suggested that an XRP ETF is "inevitable," with expectations set for 2025. While this optimism remains, the SEC's history of delays—especially regarding crypto ETFs—signals that challenges may lie ahead, regardless of the outcome of the appeal.
As of now, XRP is trading at $0.6005, down 3.5%, reflecting the market's cautious sentiment amid these developments.
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