XRP Sees Major Updates with Legal Win and ETF Momentum

XRP continues to capture the spotlight in the cryptocurrency market, as Ripple makes headway on multiple fronts, from its protracted legal case with the SEC to growing momentum in ETF initiatives and the expansion of its stablecoin, RLUSD.

The Ripple vs. SEC Legal Saga Nears an End

The long-running dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) may finally be approaching its conclusion. In a recent turn of events, Ripple’s CEO claimed that the SEC had withdrawn its appeal against the company. Subsequently, both parties agreed on a $50 million settlement, pending approval from the presiding judge. This would effectively conclude the contentious case that has had ripple effects across the broader crypto sector.

This agreement significantly trims down the original $125 million penalty previously imposed on Ripple for alleged securities law violations. The development was celebrated among XRP supporters, often referred to as the “XRP Army.” However, some within the regulatory body expressed disappointment. SEC Commissioner Caroline Crenshaw argued that such decisions weaken the agency’s position, stating that it undermines past enforcement and diminishes the consistency of legal governance.

Progress Toward a U.S.-Based XRP ETF

The pursuit of a U.S.-approved XRP exchange-traded fund (ETF) has gained fresh attention, with prominent firms like Grayscale, 21Shares, Bitwise, and WisdomTree joining the race. While the SEC extended its review period on Bitwise’s proposal until June 17, the focus has now shifted to an upcoming decision. On July 2, the regulatory deadline for Grayscale’s initiative, which seeks to convert its Digital Large Cap Fund (GDLC) — containing XRP among other digital assets — into a spot ETF, will arrive.

Should such a financial instrument receive approval, it would provide new opportunities for investors to gain exposure to XRP without directly holding the token. According to data from Polymarket, there is nearly an 80% probability of the product launching before the end of the year.

Although a spot ETF for XRP has yet to debut in the U.S., notable advancements have occurred. Futures-based ETFs tied to XRP, led by firms like Teucrium and ProShares, have already received the green light, indicating heightened institutional interest in the digital asset.

RLUSD Gains Adoption Across Major Platforms

Ripple’s stablecoin RLUSD, pegged one-to-one with the U.S. dollar, made its debut in December and has since seen expanding adoption. Originally launched in partnership with platforms such as Uphold, Bitso, Bitstamp, and Moonpay, RLUSD’s support has broadened. In April, crypto exchange Kraken enabled trading capabilities for the stablecoin. Most recently, Gemini — a U.S.-based exchange led by the Winklevoss twins — also activated both deposits and withdrawals for RLUSD.

Despite this progress, RLUSD faces stiff competition in the stablecoin ecosystem. With just over $315 million in market capitalization, it remains far behind giants like Tether (USDT) and USD Coin (USDC), which boast caps of $150 billion and $60 billion, respectively. Nevertheless, Ripple’s entrance into the stablecoin space marks a strategic move to diversify product offerings and expand its ecosystem.

XRP Price Surges with Bullish Sentiment

XRP attracted considerable attention after a strong rally on May 12, reaching a two-month high of nearly $2.70 before settling around $2.54, according to CoinGecko data. This sharp increase caught the eyes of analysts, many of whom are optimistic about XRP’s short-term trajectory.

One analyst, known on X as Captain Faibik, predicted a continued upward move to a potential $5, citing a technical breakout from a falling wedge pattern. Meanwhile, crypto analyst Crypto Patel highlighted the importance of XRP maintaining support above $2, suggesting a possible rise to $3.28 and even the $10 mark if conditions remain favorable.

On-chain data analysis by Ali Martinez lent further weight to bullish expectations, noting that XRP currently shows no significant resistance levels up ahead. According to Martinez, this could indicate an “up only” phase for the asset if broader market forces align accordingly.

Related: Expert Advice: Sell XRP If You’re Confused

As Ripple gains legal clarity, advances in ETF ambitions, and accelerates its stablecoin rollout, XRP continues to evolve as a multifaceted asset in the digital economy. The coming months could be pivotal in shaping its role both within and beyond the crypto sphere.