The approval of Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) in the United States has ignited widespread speculation about which cryptocurrency might be next in line for regulatory greenlighting. Among the frontrunners is XRP, the native digital asset of Ripple, a company at the forefront of blockchain-based financial innovation. While optimism is growing—especially given Ripple CEO Brad Garlinghouse’s confident assertion that an XRP ETF is “inevitable”—the path forward remains clouded by ongoing legal challenges with the U.S. Securities and Exchange Commission (SEC). At the same time, Ripple’s expanding global partnerships, including a promising collaboration with the National Bank of Georgia, highlight its strategic push toward transforming cross-border payments and digital finance.
The Case for an XRP ETF
With BTC and ETH now backed by approved spot ETFs, investor focus has naturally shifted to other major cryptocurrencies with strong use cases and institutional interest. XRP stands out due to its established role in facilitating fast, low-cost international money transfers through Ripple’s payment protocol, RippleNet.
Garlinghouse has publicly stated that he believes the crypto market could reach a $5 trillion valuation, driven by advancements in decentralized finance (DeFi), real-world asset tokenization, and broader adoption of blockchain technology. In this evolving landscape, he sees XRP as a foundational asset—one that deserves inclusion in regulated investment products like ETFs.
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However, unlike Bitcoin and Ethereum, whose SEC approvals followed years of advocacy and mounting pressure from investors, XRP faces a unique hurdle: its unresolved legal battle with the SEC.
The Ripple vs. SEC Lawsuit: A Major Roadblock?
Launched in December 2020, the SEC’s lawsuit against Ripple Labs alleges that the company raised over $1.3 billion through the unregistered sale of securities via XRP distributions between 2013 and 2018. The core of the dispute centers on whether XRP qualifies as a security under U.S. law.
In a landmark ruling in July 2023, Judge Analisa Torres determined that XRP itself is not inherently a security, but its classification depends on the context of the sale:
- Sales on public exchanges (to retail investors) were deemed not to be securities.
- Institutional sales (direct placements to accredited investors) were found to constitute securities offerings.
This nuanced decision was a partial win for Ripple, providing clarity that XRP can function as a currency or utility token in certain contexts. However, the SEC continued pursuing remedies for alleged violations, maintaining that Ripple profited unfairly from unregistered sales.
By October 2023, the SEC dropped charges against Ripple executives Garlinghouse and former CTO Chris Larsen, signaling a narrowing of the case. Yet the agency persisted in seeking disgorgement (repayment of profits), filing its final brief in May 2024 reaffirming its stance.
While no definitive end to the litigation has been reached, many analysts interpret these developments as signs that a resolution may be near—potentially paving the way for future regulatory consideration of an XRP ETF.
Ripple’s Strategic Vision: Beyond Legal Battles
Even amid U.S. regulatory uncertainty, Ripple has aggressively pursued global expansion, forming strategic alliances with central banks, financial institutions, and fintech platforms. One of the most notable recent collaborations is with the National Bank of Georgia (NBG).
Ripple and the National Bank of Georgia: Pioneering CBDC Innovation
Ripple is playing a key role in Georgia’s digital currency initiative—the Digital Lari pilot project, launched in 2023. This effort aims to modernize the country’s financial infrastructure using blockchain technology to improve transaction speed, transparency, and financial inclusion.
Senior Ripple executives, including Vice President James Wallis and CBDC expert Anthony Welfare, have engaged directly with NBG officials to explore integrating Ripple’s distributed ledger solutions into the nation’s payment systems. The partnership underscores Georgia’s ambition to become a regional hub for peer-to-peer (P2P) finance and blockchain innovation.
This isn’t Ripple’s first foray into central bank digital currency (CBDC) development. The company has previously worked with central banks in Palau, Bhutan, and Montenegro on similar initiatives, positioning itself as a trusted technical partner in public-sector digital transformation.
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These international successes demonstrate that even if U.S. regulators remain cautious, Ripple continues to build real-world utility for its technology—and by extension, reinforce XRP’s value proposition.
What’s Next for XRP? Stablecoins and Institutional Adoption
Looking ahead, Ripple is not just defending its past—it’s actively shaping the future of digital finance. In 2024, President Monica Long hinted at plans to launch a U.S. dollar-backed stablecoin, designed to compete with dominant players like Tether (USDT) and Circle (USDC).
This proposed stablecoin would be:
- 1:1 backed by cash and short-term U.S. Treasury holdings
- Built on public blockchains for transparency
- Aimed at enhancing liquidity and settlement efficiency across financial markets
Such a move could significantly expand Ripple’s footprint beyond cross-border payments into broader DeFi and capital market applications.
Moreover, increased institutional interest in digital assets—fueled by BTC and ETH ETF approvals—may create favorable momentum for XRP. If the SEC concludes its case without imposing crippling penalties or reclassifying XRP as a security outright, applications for an XRP ETF could follow within months.
Frequently Asked Questions (FAQ)
Will there be an XRP ETF in 2025?
While nothing is guaranteed, many industry experts believe an XRP ETF could be possible in 2025—if the SEC concludes its lawsuit favorably or with minimal penalties. A clear regulatory resolution would likely trigger immediate filings from major asset managers.
Why hasn't XRP gotten an ETF yet?
The primary obstacle is the ongoing SEC litigation over whether XRP is a security. Until this issue is fully resolved, U.S. regulators are unlikely to approve an ETF tied to the asset.
Is XRP considered a security by the SEC?
The SEC argues that some sales of XRP constituted unregistered securities offerings. However, a federal judge ruled that XRP is not inherently a security, especially when traded on public exchanges—providing critical support for its potential ETF eligibility.
How does Ripple’s global work affect XRP’s chances?
Ripple’s international partnerships—especially with central banks—demonstrate real-world utility for XRP and its underlying technology. These efforts strengthen the argument that XRP functions more like a currency than a speculative security.
What happens if the SEC wins its case against Ripple?
If the court imposes severe penalties or broadly classifies XRP as a security, it could delay or prevent ETF approval. However, most observers expect a limited outcome focused on past conduct rather than future restrictions.
Could a Ripple stablecoin boost XRP adoption?
Yes. Launching a regulated U.S. dollar stablecoin would expand Ripple’s ecosystem, increase demand for blockchain settlement solutions—and potentially drive indirect demand for XRP through enhanced network activity.
Final Outlook: A Multifaceted Path Forward
The journey toward an XRP ETF is far more complex than those of Bitcoin and Ethereum, largely due to regulatory entanglements. Yet Ripple’s resilience—evident in its legal defense, global CBDC projects, and upcoming product innovations—positions it as a pivotal player in the evolution of digital finance.
While U.S. approval remains uncertain, Ripple’s momentum abroad and growing institutional interest suggest that XRP is more than just a speculative asset—it's part of a larger transformation in how value moves across borders.
As the crypto landscape matures, clarity from regulators combined with continued innovation could finally open the door to an XRP ETF—making 2025 a potentially historic year for one of the industry’s longest-standing digital currencies.
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