• Ripple’s legal battle with the SEC may end in its favour, boosting XRP’s market outlook.

• XRP’s potential for ETF approval could attract institutional investors and enhance its market appeal in 2025.

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The ongoing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is advancing toward a pivotal phase. A recent tweet by BSN suggests a potentially favourable outcome for Ripple, which could significantly impact XRP’s market standing.

Regulatory Leadership and Potential Settlement

The expected shifts in the regulatory leadership during the Trump administration are a key concern for the cryptocurrency industry. Paul Atkins, a former SEC Commissioner and a pro-market advocate, has been chosen for key roles. Experts in the industry suggest that his appointment may improve the regulatory environment.

Carlos Guzman of GSR Research said that the SEC appeal in the Ripple case might be tossed or settled under the new leadership. If this happens, it will remove the legal ambiguity surrounding XRP, which would, in turn, raise investors’ confidence. 

The SEC’s closed meeting on January 10 could be another indicator of possible changes since it considered litigation claims and enforcement proceedings. Although the details of the matter have not been made public, the timing coincides with the Ripple case’s current legal procedures.

Further, the meeting could have considered the findings of the Office of Inspector General (OIG) inspection into alleged conflicts of interest in the SEC. This research was based on the 2018 speech of William Hinman, a former SEC official, about Bitcoin and Ethereum and his connections to Simpson Thacher, a firm supporting Enterprise Ethereum.

Ripple’s legal team previously said that the SEC’s Ethics Division had warned Hinman against communicating with his former employer. However, Hinman still had contact with the firm, which was a conflict of interest. If OIG findings show that there is bias against Ripple, then this will dent the credibility of the SEC, which may also affect the case.

XRP ETF Possibilities 

The possibility of an XRP-based exchange-traded fund (ETF) is in the spotlight. Bloomberg ETF analyst Eric Balchunas has also pointed out an increasing interest in crypto ETFs, especially after the introduction of spot Bitcoin ETFs. Still, XRP is well-positioned to become the first to receive the green light for an ETF, even if the approval process may be lengthy.

If an approved XRP ETF is launched, it will most probably attract institutional investors and thus boost the asset’s liquidity and awareness. If this development is coupled with a good legal outcome, then this could put XRP in a good position in 2025 to be one of the leading digital assets in the financial market.

Ripple’s commitment to innovation continues to strengthen its market position. This is evident from the introduction of RLUSD, a stablecoin created for cross-border payments to improve payment systems. By providing solutions for market requirements using technology, Ripple is strengthening its position within the digital asset industry.

As CNF recently reported,  Charles Hoskinson, the creator of Cardano, noted that his team has been in discussion with a view of having Cardano integrate RLUSD. 

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