The recent approval of spot Bitcoin and Ethereum ETFs in the US has investors eager to see which cryptocurrency will be next in line for regulatory greenlight. While market speculation leans towards Ripple (XRP) and Solana (SOL), Ripple’s ongoing legal battle with the Securities and Exchange Commission (SEC) casts a shadow over its ETF prospects.
Ripple vs. SEC: A Hurdle for XRP ETF Approval
The key roadblock for a Ripple ETF stems from the unresolved lawsuit between Ripple Labs and the SEC. In 2020, the SEC filed a lawsuit alleging that Ripple sold XRP as an unregistered security, raising over $1.3 billion in an unlawful offering. Ripple maintains that XRP functions as a currency, not a security, and is thus exempt from SEC registration.
While a glimmer of hope emerged in July 2023 when a court ruled XRP as non-security in public exchanges, the SEC continues to pursue its case for unregistered securities sales. This legal uncertainty significantly delays, or potentially hinders, the approval of an XRP ETF.
Industry Optimism for Crypto ETFs
Despite the Ripple vs. SEC hurdle, industry leaders remain optimistic about the future of crypto ETFs. Ripple CEO Brad Garlinghouse predicts a future with multiple crypto ETFs, highlighting the potential for a $5 trillion crypto market bolstered by these approvals. His belief aligns with the broader sentiment of a diverse and successful cryptocurrency landscape.
Further fueling the speculation, Blackrock CEO Larry Fink’s comments earlier this year regarding a potential XRP ETF by the world’s largest asset management firm sent ripples (pun intended) through the XRP community.
Also Read: $1.6 Trillion Fund Eyes Altcoins: Franklin Templeton Bets on SHIB, XRP (XRP Volume Up 77.6%)
XRP Stablecoin on the Horizon
While the future of a Ripple ETF remains uncertain, Ripple President Monica Long recently hinted at the potential launch of a Ripple stablecoin later in 2024. Stablecoins, cryptocurrencies pegged to a stable asset like the US dollar, offer more price stability compared to traditional cryptocurrencies. This announcement, alongside updates on Ripple’s upcoming integrations, generated positive buzz within the XRP community.
Conclusion: The Race for the Next Crypto ETF
The race for the next cryptocurrency ETF is on, with Solana and Ripple as the frontrunners. However, Ripple’s legal battle with the SEC throws a wrench into its plans. While Ripple explores launching a stablecoin to enhance usability, only time will tell if XRP or Solana will be the next cryptocurrency to receive the coveted ETF stamp of approval in the US.
Related: XRP vs. Solana (SOL) : Who Will Win the Race for the Next Spot ETF? (LTC & DOGE Wait in the Wings)
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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