Ripple and the United States Securities and Exchange Commission (SEC) have come to an agreement to officially conclude their appeals process regarding their long-standing legal battle, which has spanned almost four years.
Both parties, through a joint submission dated August 7th, have verified their intention to withdraw their respective appeals following a vote by the Commission.
Stuart Alderoty, Ripple’s Chief Legal Officer, stated that this agreement signals the end of the disagreement that commenced in December of 2020. As part of the settlement terms, XRP will not be designated as a security, and each party will be responsible for covering its own legal expenses.
This resolution is largely perceived as a significant victory for Ripple, aligning them with other cryptocurrency companies like Coinbase who have successfully navigated regulatory challenges with the SEC.
Upon this announcement, the price of the XRP token experienced a surge of over 10%, reaching $3.33 at the time of reporting, according to data sourced from CryptoSlate.
BlackRock XRP ETF
This settlement has sparked speculation concerning the potential launch of a spot XRP exchange-traded fund (ETF) by BlackRock, the world’s premier asset management firm. BlackRock already offers leading ETF products that track the performance of Bitcoin and Ethereum.
Nate Geraci, President of NovaDius Wealth, proposed that BlackRock might have been awaiting greater legal clarity before contemplating an XRP product under its iShares brand. He posited that neglecting assets beyond Bitcoin and Ethereum could suggest that no other cryptocurrencies possess long-term value.
However, he did emphasize that his views are purely speculative, adding:
“I’ll own it if I’m wrong.”
Conversely, not everyone shares Geraci’s optimistic outlook concerning a potential BlackRock XRP ETF.
Eric Balchunas, a Senior ETF Analyst at Bloomberg, voiced skepticism, indicating that he believes BlackRock is satisfied with its current portfolio of two crypto ETFs.
He cited the “law of diminishing returns” as a deterrent for introducing additional products, though he acknowledged that his opinion is based more on intuition than definitive evidence.
Notwithstanding his reservations about BlackRock pursuing an XRP ETF, Balchunas maintains a positive sentiment regarding the broader regulatory landscape. He estimated a 95% likelihood of an XRP ETF receiving approval before the year’s end.