SEC Drops Ripple Appeal, Fueling XRP ETF Hopes

The U.S. Securities and Exchange Commission (SEC) has dropped its appeal in the Ripple case, a landmark decision that clarifies the status of XRP. The SEC's decision, following a 2023 ruling by Judge Analisa Torres, confirms that Ripple's "programmatic sales" of XRP on exchanges like Coinbase and Kraken did not violate securities laws. However, direct sales to institutional investors were deemed violations, resulting in a $125 million fine, of which Ripple will retain $50 million. This development has spurred optimism for an XRP exchange-traded fund (ETF), with firms like Grayscale, WisdomTree, and Bitwise already filing applications. Polymarket estimates an 80% chance of an XRP ETF approval this year, and Ripple CEO Brad Garlinghouse anticipates approval in the second half of 2025. Samson Enzer of Cahill Gordon & Reindel LLP noted that the SEC's shift could lead to more crypto-related products and that secondary market sales of XRP are now considered commodities, potentially easing exchange registration requirements.