Ripple Designation Rejected, Impacting XRP ETF Future
Ripple, Inc. has been denied a designation in its long-running litigation with the U.S. Securities and Exchange Commission (SEC), which is seen as the best possible end to the case. The denial could have a direct impact on the expected XRP ETF approval process.
Judge Analisa Torres denied Ripple’s request for a judgment earlier this month, a ruling that would have ended the lawsuit and reduced the $125 million civil penalty that Ripple was ordered to pay.
Experts say the main reason is that the legal documents do not meet the criteria to trigger a designated judgment. This shows that the parties do not meet the legal requirements to enjoy protection or immunity from judgment.
Ripple and SEC Continue to Search for a Solution
Both parties will appeal to the Second Circuit Court of Appeals from August 15 onwards. Ripple no longer hopes for a quick settlement and is still facing a $125 million fine, instead of the expected $50 million.
The restriction on XRP sales to institutions has not been removed, creating a major barrier to the cryptocurrency’s wider adoption. The decision comes as XRP is being evaluated as a potential asset for ETFs and crypto-corporate funds.
Despite the absence of a specific ruling, the 2023 judgment on XRP’s status as a security remains in place. Ripple also failed to vacate the injunction barring the issuance of XRP in violation of securities laws under the July 13, 2023, summary judgment order.
Previous rulings have not clearly specified the scenario if Ripple is denied a designation, as outlined in court documents.
Lawsuit Is the Final Barrier to XRP Popularization
The legalization of the lawsuit is seen as the final hurdle to the expansion of XRP usage. Brad Garlinghouse, founder of Ripple, has confirmed that the lawsuit with the SEC is over, and there is no further investigation into XRP issuance.
As of March 19, Ripple is considered to be free of the legal pressure from the lawsuit, which was the main impetus for the re-filed ETF application. However, the new ruling may require additional proceedings before any final designation is issued.
Ripple Grows Strongly Despite Legal Challenges
XRP stands out as one of the most impressive growing crypto assets of 2025, starting to increase from November with a price of around $0.50 to a peak of $3.28 in January. Currently, XRP price is stable at $2.19, with many signs of accumulation and expectations of a breakout to higher price zones.
According to whale-to-exchange data, June 26 saw a surge in whale profit-taking, with high expectations for the ruling. XRP maintains strong support from the long-term crypto community.
At the same time, RippleX expands its cross-chain capabilities and enters the DeFi ecosystem through a partnership with Wormhole Bridge, a popular cross-chain bridge. Wormhole will support cross-chain migrations between the existing XRP Ledger and the new Ethereum-compatible XRPL EVM sidechain.
Source: https://tintucbitcoin.com/tham-phan-torres-phan-ung-ripple-sec/
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