XRP News Today: Will the XRP ETF Be Affected by SEC’s Appeal of Ripple Ruling?

The post XRP News Today: Will the XRP ETF Be Affected by SEC’s Appeal of Ripple Ruling? appeared first on Coinpedia Fintech News

The leading asset management firm Bitwise took a significant step towards launching an XRP ETF as it filed a registration for a Delaware statutory trust on September 30. The move incited excitement in the crypto community, which has been eagerly awaiting the possibility of the ETF in the US market. 

However, would SEC’s latest appeal, seeking to overturn the 2023 ruling cast an effect on the future of this XRP ETF? Let’s find out. 

Attorney Fred Rispoli in a latest podcast on Thinking Crypto has discussed the impact of SEC vs Ripple’s case on crypto regulation. While the SEC’s appeal has hurt XRP, leaving the community anxious, Fred has also shed light on how this case could impact the broader crypto regulation for other exchanges as well. 

Impact Of SEC’s Win In The Second Circuit

Fred has shared his views that if the SEC triumphs in the second circuit, then the impact will not be just on XRP holders, but it is going to be bad for Coinbase, Kraken, Binance, and other exchanges as well, and that they’re going to try and use that going forward.

When asked what their chances of winning this respective appeal are if it’s regarding the programmatic sales. He voiced that the probabilities are going to hinge on who are the three judges that get assigned that case for discussing it and for writing an opinion.

He said that if there’s a panel that has a long history of agreeing with the government on everything, then SEC’s chances of winning go up for like 70, 80%. If it’s more of an average type of situation or more favorable to Ripple, then Ripple’s chances go up. And if it’s a fairly divided panel or an average justice, then the odds are much more in favor of Ripple. 70 30, probably in their favor that everything stays the same in terms of Judge Torres’s order getting affirmed.

Can Ripple Get Back What It Lost?

He also stated that if Ripple can pull a really good panel, they might even get what they lost overturned because Ripple will cross-appeal. As far as the timeline of the case, he stated that It would be very odd if we get a ruling from the second circuit before January of 2026. He also discussed how the timeline works out with the briefing.

“And so that’s really the best bet is to push forward on the legislative front. And…the good news is that from now until then, until that 2026 timeframe, Judge Torres’s order is what is the law. And so everybody can be comfortable following that,” he asserted. 

He underscored that this appeal shouldn’t stand as too much of an obstacle because it’s baked in and now everybody in the crypto world knows the SEC is hostile. So if Ripple’s not going to make it, he asserted that it is starting to be more of a business model issue than the SEC issue. He stated that SEC is no longer just targeting Ripple, they’re targeting everybody. 

Will The SEC Block Bitwise’s XRP ETF?

He also shared his view on Bitwise filing for XRP ETF. When asked would the SEC block it based on the appeal, or do they have to let it through because Judge Torres’s ruling is the law of the land? He answered that there was no good reason to deny it. 

However, he stated that when you are dealing with an agency that has zero accountability and is very political, and it’s not just the SEC,  people are taking it very personally in the SEC. He shared that while the XRP application goes through, there are many chances for delay. He thinks that it’s going to be a long haul for the XRP ETF. But he also noted that you do have that ruling that says XRP in itself isn’t a security from Judge Torres.

He remarked that everything could change if there was a new regime coming next. He noted that Gary Gensler is almost assuredly not going to be the chair no matter who wins the presidency.