Ripple’s Appeal Pause Paves the Way for a Landmark XRP ETF Future

Ripple’s joint request to stay its appeal in the U.S. Court of Appeals for the Second Circuit caught the market’s attention on April 16. By agreeing to hold off on filing reply briefs, Ripple and the SEC have signalled a possible willingness to move straight to negotiating the Final Judgment rather than prolonging appeals. For XRP holders, this represents one of the clearest paths yet to ending a four‑year regulatory saga.

Under the terms discussed privately, Ripple would relinquish its cross‑appeal, and the SEC would retain just US$50 million of the US$125 million penalty already deposited in an interest‑bearing escrow. The remaining US$75 million would be returned to Ripple—an outcome that Chief Legal Officer Stuart Alderoty hinted at in March when he confirmed “agreement in principle” on these figures, subject to internal votes and final court approval. More importantly, the SEC has proposed lifting the injunction that currently bars institutional sales of XRP, a restriction widely viewed as the main bottleneck to broader U.S. adoption.

Legal experts are already lining up to predict the next filings. Pro‑crypto attorney Bill Morgan expects a joint motion soon asking Judge Analisa Torres to “reduce the fine and vacate the sales ban.” Fellow litigator Fred Rispoli adds that once the appeal is paused, both parties will turn their focus to district court motions aimed at modifying the existing injunction. If granted, those motions would clear the way for banks, broker‑dealers, and asset managers to trade XRP freely—a prerequisite for any meaningful ETF approval.

Indeed, several major asset managers have already filed applications for XRP‑spot ETFs, including Bitwise, Grayscale, WisdomTree, and Franklin Templeton. With institutional demand for crypto products still on the rise, analysts believe an approved ETF could usher in a fresh wave of capital. Amicus attorney John Deaton captured this sentiment bluntly: “The one prosecuted gets approved first.”

On the price front, XRP has remained relatively stable amid broader market volatility, trading just above US$2.00. But sentiment has been lukewarm given lingering uncertainty over regulatory outcomes. Should the injunction be lifted, many market watchers see a clear path to XRP regaining its all‑time high near US$3.55. Conversely, any further delays in settlement or ETF rulings could cap upside near current levels.

Looking ahead, three catalysts will likely dictate XRP’s trajectory:

• Final Judgment Settlement: A binding agreement to return most of the fine and rescind institutional sale restrictions would mark the definitive end of litigation.
• ETF Approvals: Green lights for spot‑based XRP funds would bring fresh institutional flows and heightened market visibility.
• Regulatory Climate: Broader shifts in SEC leadership or new guidance on digital assets could either smooth the path forward or introduce fresh hurdles.

For now, Ripple’s courtroom maneuvers have injected a note of cautious optimism. As the industry waits for the judge’s next ruling, both investors and institutional strategists are dusting off their models—ready to pivot on what could be the most consequential moment in XRP’s history.