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As excitement builds around the possibility of an XRP spot ETF, another major storyline is quietly stirring beneath the surface—Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). While hopes for an ETF approval have driven optimism across the crypto community, the legal status of XRP remains anything but settled.
Over the past few weeks, major investment firms have thrown their hats into the ring with filings for spot XRP ETFs. Leading names like Grayscale, Franklin Templeton, Bitwise, and 21Shares have submitted proposals to the SEC, betting on XRP’s growing adoption and relevance in the digital asset space. These filings have fueled speculation that an approval may be on the horizon, especially in the wake of the SEC’s recent softening stance toward other cryptocurrencies like Ethereum.
One of the key dates currently circled on investors’ calendars is June 17, 2025. That’s when the SEC is expected to respond to Franklin Templeton’s XRP ETF application. Grayscale already hit its decision deadline on May 21, and Bitwise awaits a response by May 25. A favorable outcome on any of these applications could bring institutional credibility to XRP and ignite fresh momentum in its price, which has remained relatively subdued despite broader market growth.
But while ETF optimism is growing, many are still waiting for resolution in the high-profile lawsuit between Ripple and the SEC. The lawsuit, which began in December 2020, centers on whether Ripple’s XRP token should be classified as a security under U.S. law. Ripple has argued for years that XRP is a currency, not a security, while the SEC contends that the company’s XRP sales violated federal securities regulations.
Recently, rumors began spreading across social media that Ripple and the SEC had quietly reached a settlement behind closed doors. Some believed that the case was effectively over, and that the only thing left was for a judge to rubber-stamp the agreement. These assumptions were quickly shut down by Marc Fagel, a former SEC regional director and legal analyst.
Fagel made it clear that despite any agreement between Ripple and the SEC, the case has not been officially resolved. He explained that while both parties may have agreed to certain terms, the judge is not obligated to accept them without further justification. The court reportedly rejected a joint request from Ripple and the SEC, asking for additional briefing before it would consider approving any proposed settlement.
“It’s not actually settled,” Fagel explained. “The parties may have entered an agreement, but implementing the settlement requires court action. And the court indicated it would not simply do what the parties asked without further briefing.”
This clarification throws cold water on the widespread belief that a resolution was imminent. While it’s possible that a deal may be finalized in the near future, it remains entirely at the discretion of the court, which has signaled it will not move forward without a thorough review.
In the meantime, XRP finds itself in a state of legal limbo. On one hand, there’s growing momentum behind the idea of an ETF, which would be a major win for the token and a step toward mainstream adoption. On the other hand, the lingering legal uncertainties surrounding its classification as a security continue to cast a long shadow.
Investors should remain cautious. Until the lawsuit is officially resolved—either through a court-approved settlement or a final ruling—XRP’s future remains uncertain. Regulatory clarity will be key in determining whether the token can truly emerge from its controversial past and regain its former standing in the crypto market.
The next few weeks will be critical. As ETF decisions approach and legal proceedings continue behind the scenes, XRP is poised at a crossroads. A favorable ruling and an ETF approval could send it soaring. But without clear legal closure, even the most promising developments may be short-lived.
For now, all eyes remain on the SEC, the courts, and Ripple’s next move.
