The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) appears to be drawing to a close, marking a pivotal moment for the cryptocurrency industry. Ripple CEO Brad Garlinghouse has confirmed that both parties will drop their appeals, effectively ending the nearly four-year regulatory saga. This development could reshape the future of XRP in traditional finance — especially when it comes to exchange-traded funds (ETFs). With regulatory uncertainty fading, the spotlight now turns to major financial players like BlackRock: could they finally enter the XRP ETF race?
The End of the Ripple vs. SEC Legal Battle
In a significant move, Brad Garlinghouse announced that Ripple will withdraw its appeal challenging the court’s ruling on its past institutional sales of XRP. This follows U.S. District Judge Analisa Torres’ recent dismissal of a joint motion filed by both Ripple and the SEC. That motion had sought to revise the final judgment — specifically, reducing the civil penalty from $125 million to $50 million and lifting the permanent injunction on Ripple’s future institutional XRP sales.
Judge Torres urged both sides to either proceed with their appeals in the Second Circuit Court or drop them and accept her original ruling. Ripple chose the latter.
Garlinghouse stated that Ripple expects the SEC to follow suit and withdraw its cross-appeal, which contested the court's earlier decision that Ripple’s programmatic sales of XRP did not constitute securities offerings. Once both appeals are formally dropped, the litigation will be officially concluded.
👉 Discover how major crypto developments are shaping the future of digital asset investments.
This resolution marks a turning point not only for Ripple but for the broader crypto market. By settling the dispute without further legal escalation, Ripple gains regulatory clarity — a crucial step toward mainstream adoption and financial integration.
Shifting Focus: Building the "Internet of Value"
With the lawsuit nearing its end, Garlinghouse emphasized that Ripple will now focus on its core mission: building the “internet of value.” This vision centers on using blockchain technology and digital assets like XRP to enable fast, low-cost cross-border payments. The company has long positioned XRP as a bridge currency for financial institutions seeking real-time settlement solutions.
Now, freed from the shadow of prolonged litigation, Ripple can strengthen partnerships with banks and payment providers worldwide. The conclusion of the SEC case may also encourage more institutions to explore integrating XRP into their operations — a shift that could increase demand and liquidity.
Could an XRP ETF Be on the Horizon?
One of the most anticipated outcomes of this legal resolution is the potential approval of a spot XRP ETF in the United States. Nate Geraci, president of ETF Store Inc., stated that the termination of the appeals process removes the primary regulatory hurdle standing in the way of such an ETF.
To date, over a dozen asset managers — including 21Shares and Bitwise — have filed applications with the SEC to launch XRP-based ETFs. However, these applications have remained in limbo, largely due to concerns over Ripple’s ongoing legal challenges with the SEC.
Now that those concerns are being resolved, the path appears clearer for approval.
“With no active litigation and a court-established precedent that programmatic sales of XRP are not securities, the SEC has significantly less grounds to deny or delay these ETF applications,” Geraci noted.
This precedent is critical. It distinguishes XRP from other tokens still under regulatory scrutiny and positions it as one of the few digital assets with a favorable legal framework in the U.S.
Is BlackRock Ready to Enter the XRP ETF Market?
All eyes are now on BlackRock — the world’s largest asset manager — and whether it will file for an XRP ETF. The firm has already made bold moves into crypto with its Bitcoin and Ethereum ETFs. Given XRP’s growing institutional appeal and newly clarified status, many analysts believe it's only a matter of time before BlackRock considers expanding its digital asset offerings.
While BlackRock has not yet filed an application for an XRP ETF, insiders suggest that regulatory risk was likely a key factor holding them back. With that concern now diminished, the door is wide open.
If BlackRock enters the space, it would bring unparalleled credibility, liquidity, and investor access to XRP. Such a move could trigger a wave of similar filings from other major financial institutions, accelerating the token’s integration into traditional finance.
👉 Explore how leading financial institutions are embracing blockchain innovation today.
Frequently Asked Questions (FAQ)
Q: What does dropping the appeals mean for Ripple and XRP?
A: Dropping the appeals means both Ripple and the SEC accept Judge Torres’ rulings as final. This brings long-awaited regulatory clarity, confirming that programmatic sales of XRP are not securities — a major win for Ripple and holders.
Q: Does this guarantee an XRP ETF will be approved?
A: While not guaranteed, it significantly increases the likelihood. The main regulatory obstacle — ongoing litigation — is now removed, giving the SEC less justification to reject existing ETF applications.
Q: Has any company officially launched an XRP ETF yet?
A: As of now, no spot XRP ETF has been approved in the United States. However, multiple applications are pending with the SEC, and decisions could come within months following this legal resolution.
Q: Why hasn’t BlackRock applied for an XRP ETF yet?
A: Regulatory uncertainty was likely the biggest barrier. With Ripple’s case settled, BlackRock may now feel confident enough to explore or file an application if market demand justifies it.
Q: How could an XRP ETF impact the price of XRP?
A: ETF approvals typically lead to increased institutional investment, improved liquidity, and higher visibility — all of which can drive demand and potentially boost XRP’s market value over time.
Q: Is XRP considered a security in the U.S.?
A: According to Judge Torres’ ruling, programmatic sales of XRP to retail investors on exchanges do not constitute securities offerings. However, Ripple’s past institutional sales were found to be unregistered securities — a distinction that shapes current compliance practices.
The Road Ahead for XRP
The resolution of Ripple’s legal battle with the SEC is more than just corporate news — it's a landmark moment for crypto regulation in America. It reinforces the idea that not all digital assets are securities and sets a precedent that could influence future regulatory decisions on other tokens.
For investors, developers, and financial institutions, this clarity opens new doors. Whether through direct investment, payment solutions, or ETFs, XRP is poised for greater adoption in 2025 and beyond.
As institutional interest grows and regulatory frameworks evolve, staying informed is essential. The next chapter in digital finance is being written — and assets like XRP are at the center of it.
👉 Stay ahead of crypto market shifts with real-time insights and secure trading tools.