Ripple Faces Spot XRP ETF Approval Uncertainty

Court Rejects SEC Motion and XRP Price Falls 

The potential spot XRP ETF approval might be in danger after Ripple Labs suffered a surprise legal blow. In the SEC vs. Ripple case, Judge Torres denied the SEC’s request to reconsider the decision that allowed Ripple to sell XRP to institutional investors and to lower the $125 million penalty. 

The XRP price fell to $2.29 from $2.65 as a result. The ruling by Judge Torres is critical for the spot XRP ETF approval, and now investors await the SEC’s second settlement letter filing addressing the issues raised by the honorable court. Ripple must convincingly argue that lifting the injunction and reducing the penalty serve the public and institutional investors. 

Will the Spot XRP ETF be Approved?

Developments in the Ripple case are crucial for the spot XRP ETF approval, and intermediate deadlines are coming up in the week ahead. The recent court rulings might shut the door on any surprise approvals, and the XRP token might continue to face selling pressure. 

If the SEC can convince the court to lift the injunction and lower the penalty, the fates of the XRP price and the spot XRP ETF approval could be changed. It is possible that the SEC would publicly need to admit that its case was flawed and that the XRP token is indeed a commodity and not a security. After five years of legal battles, such a public admission would be significant for Ripple Labs and the broader crypto market. 

Possible Spot XRP ETF Approval Date

The chances of a spot XRP ETF approval remain elevated, and Polymarket places approval odds by the end of the year at 83%. 

XRP ETF hype is making headlines again, and a spot XRP ETF approval can be a game-changer. It will draw in institutional money and help the XRP use case touch new horizons. Despite the bearish sentiment, there is rising institutional interest, and with a fair regulatory environment, there is a good chance we could see a spot XRP ETF soon. Among other crypto ETF, the spot XRP ETF is the most awaited.

Judge Torres’s ruling has caught the crypto market off guard and reignited legal uncertainty. With the power to dictate the future of the token with the SEC, a new layer of complexity is added to an already prolonged legal battle. 

According to official filings, the SEC will decide on Franklin Templeton’s spot XRP ETF on June 17th. The decisions could be delayed as the SEC typically takes full advantage of its 240-day review period. 

Conclusion

The fate of a spot XRP ETF now hinges on the outcome of Ripple’s ongoing legal battle with the SEC. While Judge Torres’s latest ruling introduces fresh uncertainty, it also underscores the importance of regulatory clarity in crypto markets. If Ripple can secure favorable outcomes in the coming weeks, particularly regarding the injunction and penalty, the approval of a spot XRP ETF could still be within reach. 

With high institutional interest and major deadlines approaching—especially the SEC’s June 17th decision on Franklin Templeton’s ETF proposal—the next few weeks will be critical for XRP and its investors. The road to a spot XRP ETF may be rocky, but it’s far from closed.

With high-stakes deadlines ahead—especially the SEC’s June 17th decision on Franklin Templeton’s ETF proposal—the next few weeks will be critical. Whether XRP achieves ETF approval this year may ultimately depend on how convincingly Ripple can defend its case and how flexible the SEC is willing to be in its interpretation of crypto regulation.

The road to a spot XRP ETF may be rocky, but it’s far from closed.

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.