Ripple CEO confident in XRP ETF approval amid SEC dispute

Ripple (CRYPTO:XRP) CEO Brad Garlinghouse expressed confidence that the U.S. Securities and Exchange Commission (SEC) will eventually approve an XRP-based exchange-traded fund (ETF). 

This optimism comes despite Ripple’s long-standing legal conflict with the SEC, which began in 2020 when the regulator filed a $1.3 billion lawsuit against the firm for allegedly selling unregistered securities in the form of XRP. 

According to Garlinghouse, the approval of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) ETFs by top Wall Street firms signals a shift in the SEC’s stance towards cryptocurrencies. 

He stated in an interview with Bloomberg, “To me, it’s just inevitable [that an XRP ETF will be approved],” emphasising the growing institutional and retail demand to access XRP as an asset class. 

Two separate fund managers, Bitwise and Canary Capital, have recently filed applications for XRP-based ETFs. 

The move is seen as a step towards broader acceptance of XRP in mainstream financial markets. 

Garlinghouse’s optimism persists even as Ripple faces an SEC appeal over last year’s partial court victory. 

A federal judge previously ruled that Ripple’s programmatic sales of XRP did not qualify as securities, although $728 million in institutional sales were deemed unregistered. 

The legal battle has taken a significant financial toll on Ripple, with the SEC initially seeking a $2 billion fine. 

However, the court reduced this to $125 million, which Ripple’s legal team regarded as a substantial win. 

Chief Legal Officer Stuart Alderoty noted in an interview that the ongoing SEC appeal “will backfire” and provide further clarity for Ripple’s operations. 

XRP remains well below its all-time high of $3.40 in 2018, according to CoinGecko. 

Despite the legal hurdles, Ripple remains focused on its core business while the industry anticipates the outcome of the ETF filings. 

Based on the developments, analysts suggest the SEC may face mounting pressure to expand the approval of crypto-based ETFs.

At the time of reporting, the XRP price was $0.5257.