Preface

By 2025, XRP is at a critical juncture, as the U.S. Securities and Exchange Commission (SEC) concludes its lawsuit against Ripple Labs, the probability of XRP ETF approval significantly increases, and the market is full of anticipation for its future.

SEC Ends Lawsuit, XRP ETF Approval Odds Rise

In March 2025, the SEC officially ended its lawsuit against Ripple Labs, withdrawing allegations that the sale of XRP on public markets constituted the sale of unregistered securities. This move has paved the way for the approval of an XRP ETF. According to data from Polymarket, the likelihood of an XRP ETF being approved in 2025 had risen to 79% at the time of writing.

(Source: Polymarket)

The lawsuit, which began in December 2020, became one of the most representative legal battles between the crypto industry and U.S. regulatory agencies. The SEC claimed that Ripple raised funds through unregistered XRP sales, violating federal securities laws. Ripple, on the other hand, argued that XRP is a general-purpose crypto asset and should not be classified as a security. The case lasted over four years and concluded with a partial victory for Ripple. This outcome has provided legal precedent and confidence for other crypto projects.

Multiple Asset Management Firms Submit XRP ETF Applications

Since 2024, several asset management firms have submitted XRP ETF applications to the SEC. These include Bitwise, 21Shares, Canary Capital, WisdomTree, Grayscale, ProShares, CoinShares, Volatility Shares, and Franklin Templeton. Among them, Grayscale plans to convert its existing XRP Trust into an ETF and list it on the New York Stock Exchange. Franklin Templeton submitted an application in March 2025 to track the spot price of XRP and use Coinbase Custody as its custodian. These moves indicate that mainstream financial institutions view XRP as a promising asset and are preparing to bring it into traditional investment markets through ETF products.

Potential Impact of an XRP ETF

The approval of an XRP ETF would have far-reaching implications for the market. It would provide institutional investors with a regulated investment tool, lowering the entry barrier and promoting capital inflows. Additionally, the launch of an ETF would increase XRP’s liquidity, reduce price volatility, and enhance overall market stability. Approval of such an ETF could also pave the way for ETFs based on other cryptocurrencies, thereby advancing the development of the broader crypto market.

Market observations suggest that the existence of an ETF would help stabilize XRP’s capital flows and market confidence. It would also enable traditional asset allocators, such as pension and insurance funds, to participate in XRP investment in a compliant manner, further solidifying XRP’s position as a mainstream asset.

Lessons from the XRP vs SEC Lawsuit for the Industry

The clash between XRP and the SEC is not just a dispute over a single project—it has tested the entire crypto industry’s regulatory boundaries. The XRP case has shown the industry how U.S. regulators define securities and how they enforce regulations. It has also encouraged other projects such as Cardano (ADA), Stellar (XLM), and even Solana (SOL) to place greater emphasis on legal compliance.

During the litigation process, Ripple Labs actively expanded its international business—launching more cross-border payment collaborations in Asia and the Middle East, thereby reducing its reliance on the U.S. market. This demonstrates the strategic resilience of crypto companies in the face of regulatory challenges. These developments have made “XRP SEC News” a key topic followed by both the Web3 community and traditional financial media.

Market Reaction and Future Outlook

As the likelihood of XRP ETF approval rises, market demand for XRP is also increasing. As of press time, data from CoinMarketCap shows that XRP’s market capitalization has reached approximately $122.9 billion, making it the fourth-largest cryptocurrency. Analysts predict that with the launch of the ETF, XRP’s price is likely to rise further, attracting increased attention from investors.

(Source: CoinMarketCap)

Conclusion

The approval of an XRP ETF would mark a major milestone for the cryptocurrency market and inject fresh momentum into XRP’s growth. As the regulatory landscape improves and market demand increases, XRP is poised to secure a foothold in the mainstream financial market. This is not merely a win for XRP—it also symbolizes a historic juncture where Web3 begins to merge with traditional finance.