The $XRP community is monitoring.

the courts are closely watching again after Judge Torres rejected a joint request from Ripple and the SEC, meaning that the lawsuit - which has been ongoing since 2020 - will continue.

The decision has already led to a loss of $XRP of more than $2 billion in market value in just 24 hours. But Fred Respoli, a lawyer supporting Ripple, says this recent setback will not jeopardize the hopes of #XRP and ETFs - at least not directly.

Respoli does not believe that the rejection will affect the status of $XRP in the secondary market, which matters for the approval of exchange-traded funds. Although the headlines might make you think otherwise, he sees no legal reason preventing the court order in the case from stopping the SEC from proceeding with the XRP exchange-traded fund.

It confirms that the court order only matters if the Securities and Exchange Commission wants it to be significant, and the committee can easily waive the restrictions or choose not to enforce them. The big question, as he sees it, is whether the new leadership at the SEC is willing to change its approach.

Behind the scenes

He also mentioned that there are signs that Ripple and the SEC are heading towards a quiet settlement, possibly in exchange for a reduced fine and Ripple changing its institutional sales practices. That would keep the original Torres ruling intact while easing regulatory tension.

The #ريبل has already made changes, as its legal team is now calling past violations "historical institutional sales", indicating that they are trying to distance current operations from past practices.

ETF analysts are feeling optimistic. Eric Balchunas and James Seyfert from Bloomberg recently stated that the odds of approval for XRP and Solana and Litecoin exchange-traded funds in 2024 exceed 90%, indicating that the SEC is becoming more engaged with potential issuers.

If that continues, Respoli might be right: the exchange-traded fund option is still on the table, even with all the legal turbulence. #RippleSECSettlement #RippleCEO #RippleUpdate