The Ripple – SEC lawsuit concludes after nearly 5 years, paving the way for a high likelihood of XRP ETF approval at a rate of 77%.
Legal clarity helps boost market confidence and attracts institutional investors interested in XRP. Large funds have applied to issue XRP ETF, raising investor expectations.
MAIN CONTENT
The conclusion of the Ripple – SEC lawsuit helps clarify the legal position of XRP.
The likelihood of XRP ETF approval has risen to 77%, with the market reacting positively.
Large asset funds have submitted applications for XRP ETF, while BlackRock still has no plans.
How has the Ripple and SEC lawsuit unfolded over the past time?
The SEC sued Ripple Labs and its executives for allegedly selling 1.3 billion USD of XRP without registering it as a security.
Ripple argues that XRP is a currency, not a security. During the lawsuit, many internal SEC documents, including emails and drafts related to former director William Hinman's statement in 2018, were ordered to be disclosed by the court. The judge also concluded that trading XRP on a public exchange does not violate securities law, but direct transactions with institutions worth 728 million USD do violate.
In 2023, both parties withdrew their appeals against Judge Analisa Torres' ruling, meaning the lawsuit officially closes as Ripple agrees to pay a fine of 125 million USD, with 50 million USD paid to the U.S. Treasury, and 75 million USD returned to Ripple.
"The lawsuit is over, now Ripple can focus on business development."
Stuart Alderoty – Legal Director of Ripple, 2024
What is the reaction of experts and major investors to the conclusion of the lawsuit?
Stuart Alderoty confirms the lawsuit is over and Ripple returns to focus on business. Bloomberg experts predict the likelihood of XRP ETF approval to be as high as 95% despite opposition from an SEC commissioner.
This event has reinforced investor confidence and helped eliminate years of legal barriers against XRP. This information is regarded by financial analysts as a significant turning point that promotes the development of the cryptocurrency market.
How will the trend and outlook for XRP ETF approval develop?
Immediately after the Ripple lawsuit concludes, the likelihood of XRP ETF approval is expected to rise to 77%. The market reacts positively as XRP price increases by 11% in 24 hours, from 2.99 USD to 3.30 USD, bringing market capitalization above 180 million USD and maintaining a top 5 cryptocurrency position by total value.
The market's legal clarity encourages investment funds and institutions to be bolder in filing for XRP ETF, opening up the possibility of legitimizing derivative financial products based on XRP.
"The official withdrawal of the lawsuit reduces legal risks and helps the cryptocurrency market make new progress."
Eric Balchunas – Bloomberg ETF Specialist, 2024
Is BlackRock really preparing to file for an XRP ETF as rumored?
On August 8, 2024, there are reports that BlackRock may submit an application for the iShares XRP Trust after the lawsuit concludes and other large funds have filed applications.
However, a BlackRock spokesperson denied this plan, stating that the company currently has no intention to issue an ETF for XRP or SOL. ETF Store President Nate Geraci believes that BlackRock may have waited until this moment to act, but could still be wrong.
Frequently Asked Questions
What does the conclusion of the Ripple – SEC lawsuit mean for the cryptocurrency market?
The conclusion of the lawsuit clarifies the legal framework for XRP, facilitating the development of XRP ETF and increasing investor confidence.
How likely is it that the XRP ETF will be approved?
According to experts, the current approval rate is about 77% to 95%, marking a positive outlook for XRP ETF.
How much penalty does Ripple have to pay after the lawsuit?
Ripple is fined 125 million USD, of which 50 million USD is paid to the U.S. Treasury, and 75 million USD is refunded after being held in a trust fund.
Is BlackRock officially filing for an XRP ETF?
BlackRock currently has no official plans to file for an XRP ETF, according to confirmations from the company.
How has the price of XRP changed after the lawsuit?
The price of XRP increased by about 11% within 24 hours, from 2.99 USD to 3.30 USD, pushing market capitalization above 180 million USD.
Source: https://tintucbitcoin.com/xrp-vu-kien-sec-va-etf-moi/
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