The long-running legal saga between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs continues to command attention across the cryptocurrency world. As speculation intensifies over a possible SEC appeal withdrawal, market participants are closely watching for signs of regulatory clarity that could reshape the future of XRP. With key developments unfolding in litigation, custody expansion, and ETF prospects, the coming weeks may mark a turning point for one of crypto’s most debated assets.
Growing Speculation Around SEC Appeal Withdrawal
Recent commentary has reignited hopes for a resolution in the SEC vs. Ripple case. On March 17, crypto analyst Andrew ‘AP_Abacus’ Parish suggested the SEC might be preparing to withdraw its appeal—an assertion amplified by attorney John E. Deaton, who shared the post widely within the XRP community.
This speculation builds on earlier reports from former Fox Business journalist Eleanor Terrett, who cited two anonymous SEC sources indicating that Ripple’s legal team has been negotiating more favorable terms since the August 2023 district court ruling. That decision imposed a $125 million penalty on Ripple Labs and issued a permanent injunction restricting the company from selling XRP to institutional investors.
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With Ripple’s reply brief deadline set for April 16, the window for the SEC to withdraw its appeal is narrowing. Should the agency step back, it would eliminate a major source of legal uncertainty, potentially elevating XRP’s regulatory standing and restoring investor confidence.
A withdrawal wouldn’t just benefit Ripple—it could set a precedent for how digital assets are classified under U.S. securities law, influencing the broader crypto market’s trajectory.
XRP Price Outlook: Legal Clarity Meets Market Dynamics
As of March 18, XRP traded at $2.2433, down 4.15% on the day. While still below its January peak of $3.3999 and all-time high of $3.5505, price movements remain tightly linked to legal developments.
Several key factors are shaping XRP’s near-term price potential:
1. SEC Appeal Status
If the SEC withdraws its appeal, analysts project XRP could break past $3.55 and challenge higher resistance levels. Conversely, prolonged litigation risks pushing prices toward $1.50 as uncertainty deters institutional adoption.
2. XRP-Spot ETF Prospects
Growing interest in exchange-traded funds has fueled speculation about an eventual XRP-spot ETF. Approval could open the floodgates to institutional capital, with some estimates suggesting a surge toward $5 per token. However, regulatory hurdles—especially given the ongoing case—may delay approval beyond 2025.
3. Macroeconomic Conditions
External forces also play a role. Escalating trade tensions and a hawkish Federal Reserve stance could pressure XRP toward February’s low of $1.7938. In contrast, dovish monetary policy and global economic stabilization may support a rebound toward $2.50.
Market sentiment remains cautious but optimistic, with traders balancing short-term volatility against long-term fundamentals.
Ripple Expands Into Crypto Custody With New Trademark Filing
Even amid legal challenges, Ripple is strategically diversifying its business model. On February 25, 2025, the company filed a trademark application for “Ripple Custody” with the U.S. Patent and Trademark Office (USPTO), signaling its intent to enter the rapidly growing digital asset custody sector.
The filing outlines plans for a suite of services, including:
- Downloadable software for managing cryptocurrency, fiat, and digital currency storage and transmission
- Secure custodial solutions for both digital and traditional financial assets
- Peer-to-peer network infrastructure to support secure financial data exchange
- Software-as-a-Service (SaaS) platforms for institutional-grade crypto custody
These capabilities suggest Ripple may soon launch a proprietary wallet or enterprise custody product, positioning itself alongside firms like Coinbase and BitGo in serving institutional clients.
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Given that the global digital asset custody market is projected to exceed $100 billion within the next decade, this move could become a significant revenue driver—diversifying Ripple’s income beyond cross-border payments and On-Demand Liquidity (ODL) solutions.
XRP ETF Filings: Momentum Builds Amid Regulatory Uncertainty
Interest in XRP-based ETFs is gaining traction. Multiple asset managers—including Bitwise, WisdomTree, 21Shares, ProShares, and Franklin Templeton—have reportedly submitted applications to list XRP-spot ETFs with the SEC.
On March 17, Hashdex updated its Nasdaq Crypto Index US ETF filing to include XRP, Litecoin, Solana, and Cardano. While this amendment does not constitute a standalone XRP ETF, it reflects growing institutional appetite for exposure to the asset.
However, regulatory ambiguity remains a barrier. Unlike Bitcoin and Ethereum—where spot ETFs have gained approval—XRP’s unresolved legal status complicates the path forward.
Still, increased filings signal strong market demand. Should the SEC reach a favorable settlement with Ripple or clarify XRP’s non-security status, an approved ETF could dramatically boost liquidity and attract pension funds, hedge funds, and retail investors alike.
Frequently Asked Questions (FAQ)
Q: What would happen if the SEC withdraws its appeal against Ripple?
A: A withdrawal would likely remove major legal uncertainty around XRP, potentially leading to wider exchange listings, increased institutional investment, and upward price momentum.
Q: Is XRP considered a security by the SEC?
A: The district court ruled in July 2023 that XRP is not a security when sold to retail investors, but the SEC continues to argue it is a security in certain contexts. The appeal process has kept this debate unresolved.
Q: How many XRP ETF applications have been filed?
A: Exact numbers haven’t been confirmed by the SEC, but multiple firms have submitted proposals. Hashdex’s inclusion of XRP in a broader index fund adds to momentum—but standalone approvals remain pending.
Q: Could Ripple launch its own crypto wallet?
A: The “Ripple Custody” trademark suggests they’re developing secure storage solutions, possibly leading to a dedicated wallet or institutional custody platform.
Q: What factors most influence XRP’s price today?
A: Legal developments with the SEC, ETF prospects, macroeconomic trends, and overall crypto market sentiment are the primary drivers.
Q: When will we know if the SEC drops its appeal?
A: While no official timeline exists, Ripple’s April 16 reply deadline offers a natural checkpoint—any withdrawal would likely occur before then.
Conclusion: A Pivotal Moment for XRP
The next few weeks represent a critical juncture for Ripple and XRP. The possibility of an SEC appeal withdrawal, combined with expanding business ventures into custody and rising ETF momentum, creates a convergence of bullish catalysts.
While legal clarity remains elusive, each development brings the market closer to resolution. Whether through settlement, appeal withdrawal, or regulatory evolution, the outcome will not only define XRP’s future—but could also influence how digital assets are governed in the United States.
Investors should stay informed, monitor official filings, and prepare for potential volatility as this high-stakes chapter unfolds.
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