The expansion of Futures ETFs reflects growing regulatory acceptance of XRP as an asset class. Importantly, investors may consider the futures market as a stepping stone toward an XRP-spot ETF market.
SEC Appeal Withdrawal Crucial for XRP-Spot ETF Approvals
While futures ETFs draw interest, an SEC appeal withdrawal and resolution of the Ripple case remain crucial for XRP-spot ETF approvals. Investors await an SEC court filing requesting Judge Torres to lift the injunction prohibiting XRP sales to institutional investors and to lower the $125 million penalty as part of an agreed settlement.
Ripple Chief Legal Officer Stuart Alderoty recently highlighted the developments, stating:
“The SEC agreed to drop its appeal without conditions. Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple. The agency will also ask the Court to lift the standard injunction that was imposed earlier at the SEC’s request.”
However, SEC Commissioners must vote on the proposed agreements with SEC staff. Ripple CEO Brad Garlinghouse provided further details on discussions with the SEC and steps toward an end to the case, stating:
“We have reached agreement with staff. Usually, what happens is you reach agreement with staff. Staff makes recommendations to the Commission, and then the Commission votes. […] The Commission hasn’t yet voted. But, what we’ve agreed is to dismiss and move on. We had put in escrow a potential fine of $125 million. We’re actually taking most of that back.”