The long-running lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its end, and its potential outcome is no longer just about the fate of XRP but could be a key opportunity to reshape the global financial infrastructure. Prominent crypto researcher SMQKE noted while interpreting a report written by U.S. legal expert James C. Spindler that if Ripple ultimately prevails, it may become the 'legitimate template' for financial institutions to embrace blockchain.
This is a superficial 'securities classification dispute,' but it hides a complete logic for building future financial infrastructure.
A 'financial system testing ground' behind a lawsuit.
The focus of the Ripple lawsuit is whether XRP is a security. Judge Analisa Torres previously ruled that Ripple's actions of programmatic sales and partial distribution of XRP did not violate securities laws. Although Ripple may ultimately need to pay a $50 million fine for the institutional sales portion, this is far less than the $125 million the SEC initially sought to hold it accountable for.
This ruling has been seen by SMQKE as **'a prelude to a complete victory.'** The deeper significance lies in the fact that such rulings establish a compliance framework that allows companies to conduct token sales and capital circulation without falling into the regulatory quagmire of securities laws.
This is not only a relief for Ripple but also a structural benefit released for the entire crypto finance industry.
Linkage touchpoint of the ICM narrative: Financial blueprint emerges.
The report suggests that Ripple's initial XRP issuance and subsequent operations essentially represent 'the partial sale of future company value,' which aligns with Mlion.ai's recent analysis of the ICM (Internet Capital Market) model.
Traditional financial IPOs will be replaced by on-chain token issuances (such as XRP), and the judicial ruling's compliance pathway will become the passport for financial institutions to enter the blockchain.
Banks, brokerages, and asset management institutions can use this as a model to launch their own token products.
Payment networks can directly connect to blockchain wallets for instant settlement and value transfer.
Smart contracts will become a new engine for financial services such as bank custody, clearing, and interest rate delivery.
More importantly, if Ripple wins and establishes the legal status of 'non-security,' it will allow 'decentralized assets' to enter the centralized financial compliance system for the first time. This will open a fast track for tokenized assets (RWA), on-chain bond issuance, cross-border payments, and other applications.
Ripple's victory is not just a win for XRP, but a strategic breakthrough for the entire industry.
Mlion.ai's on-chain compliance map module indicates that starting from Q4 2024, more and more institutional wallets will begin to hold XRP, and this trend is almost synchronized with the case's progress. This is not a coincidence - rather, capital is betting on a clear compliance expectation.
If Ripple wins, the four major scenarios for 'on-chain finance' may explode first:
Tokenization of securities: Traditional assets such as stocks and bonds will be issued, traded, and settled through the Ripple network or similar platforms.
Reconstruction of cross-border payment networks: The interbank SWIFT network structure may be replaced by on-chain payment protocols like RippleNet.
Compliance DeFi scenarios: Asset tokens based on court approval mechanisms will become the core of 'regulatable DeFi' products.
Central Bank Digital Currency (CBDC) technology support: Ripple has previously conducted CBDC pilots with several countries, and its technological pathway may be 'indirectly legitimized' by the courts.
Mlion.ai's 'Compliance Tracking Engine' shows that more than 17 jurisdictions outside the U.S. have begun to reference the Ripple case to formulate or adjust local cryptocurrency policies, including Singapore, Switzerland, and the UAE.
The case still has variables, but the trend has quietly established itself.
Although Ripple and the SEC have preliminarily reached an agreement on payment fines and proposed lifting the future institutional sales ban, Judge Torres has yet to approve this 'indicative ruling' due to procedural defects. Both parties still need to resubmit materials and await the determination of the final hearing time.
However, Ripple has already gained the first mover advantage in market consensus.
Once the judgment is finalized, it will establish not only market confidence in XRP but also a complete set of new rules for decentralized finance.
Mlion.ai recommends
For investors:
Short to medium term: Closely monitor the progress of the Ripple lawsuit and large on-chain transfers of XRP (whale activity), and set alerts through Mlion.ai's on-chain monitoring module.
Long-term: Focus on projects with a high degree of integration with financial infrastructure, such as tokenized RWA platforms, cross-border payment protocols, stablecoin reserve platforms, etc.
Strategy tip: Based on the Ripple model, look for platform-based public chains or middleware projects with a 'potential pathway to legitimacy,' such as XLM, QNT, ALBT, etc.
In conclusion
Perhaps we are at a crossroads between traditional finance and on-chain finance, and the final ruling of the Ripple lawsuit will act as a traffic light for this direction.
If the green light is given, capital will flow towards a clearer, more regulated, and more decentralized future.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice. Users should make independent judgments and decisions based on their own risk preferences and knowledge reserves.