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Breaking: Ripple Wins as SEC Drops Case, XRP Skyrocket by 14%

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Key Takeaways:

  • Ripple secures a major victory as the SEC drops its appeal.
  • XRP price surges, breaking key resistance levels.
  • Ripple now plans its next steps, eyeing further industry growth.

Ripple has achieved a decisive win in its prolonged battle with the U.S. Securities and Exchange Commission (SEC). The case, which started in December 2020, centered around whether XRP was a security.

In July 2023, a court ruled that XRP, when sold to retail investors on public exchanges, was not a security. While the SEC initially attempted to challenge this ruling, it has now officially dropped its appeal, marking a resounding victory for Ripple and the cryptocurrency industry.

Brad Garlinghouse, Ripple’s CEO, celebrated the moment as a turning point for digital assets. The decision reflects a shift in regulatory attitudes, signaling greater acceptance of blockchain innovation.

Ripple’s Chief Legal Officer, Stuart Alderoty, reinforced this sentiment, calling the resolution a precedent-setting moment for the crypto sector. With the legal battle behind them, Ripple now has the freedom to expand its operations without legal uncertainty.

XRP Price Surges After SEC’s Decision

After the SEC pulled out, XRP had a sudden price increase. The token is trading at $2.56, up by 13.74% on the daily chart and by 14.78% over the last week.

The bullish trend pushed XRP towards critical resistance levels, with $2.9 and $3.3 being the significant obstacles, based on the analysts’ views. If the trend continues, projections are that the price may go up to the $4-$4.3 level.

XRP 1D graph coinmarketcap 9
Source: CoinMarketcap

The market response underscores the broader importance of the resolution of the case. Investors are more bullish on XRP, and its newfound regulatory certainty has raised optimism. Without the legal uncertainty, XRP could see more institutional demand and wider usage.

Ripple Looks Ahead to Expansion

Now that the legal issues are behind it, the company has the potential to accelerate its growth. The company has had a long-term focus on the creation of payment systems based on the blockchain, and the victory paves the way for increased growth.

Ripple’s leadership hinted at exploring strategic considerations, including potential appeals of prior judgments in its favor.

Other than the legal concerns, the company is poised to drive more adoption of its technology. Having the legal issues clarified in the U.S., the company can now pursue partnerships, international expansion, and institutional adoption without restrictions.

The community considers this a step towards a more innovation-friendly environment, not just for Ripple, but for the whole blockchain community as well.

This outcome marks a new chapter for Ripple and XRP, with the potential to determine the direction the industry will go in the future.

Related Reading | XRP’s Falling Wedge Signals Big Move: Breakout to $3.39 Possible

Sui’s Price Climbs as Canary Capital Files for first ETF in US SEC filing

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  • Canary Capital files its sixth crypto ETF with the SEC, focusing on Sui blockchain token.
  • Trump-backed World Liberty Financial’s Sui partnership fuels regulatory optimism and market interest.
  • Analysts predict a breakout, with Pushpendra Singh setting a $7 target for Sui’s price.

Canary Capital is pushing forward with its crypto investment ambitions, filing for its sixth crypto exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This time, it’s targeting Sui, the native token of a layer-1 blockchain that plays a crucial role in staking and transaction fees.

The Form S-1 filing, submitted on March 17, seeks approval for the Canary SUI ETF, although details on its exchange listing and ticker symbol remain undisclosed. If approved, this ETF would directly hold Sui, which currently ranks 23rd among cryptocurrencies with a market capitalization of approximately $7.36 billion.

This marks another ambitious step for Canary Capital, which has actively pursued ETF approvals in recent months. The firm has previously filed for ETFs tied to Solana, Litecoin, XRP, Hedera, and Axelar, indicating a broader push to capitalize on the growing demand for regulated crypto investment products.

Sui ETF
Source: SEC.Gov

Political Winds and Market Reactions

The timing of Canary’s ETF filing is significant, coming just days after Sui announced a strategic partnership with World Liberty Financial on March 6. This crypto platform, notably backed by U.S. President Donald Trump, has been incorporating Sui into its “Macro Strategy” token reserve while exploring additional joint product opportunities.

Trump’s stance on crypto has been a key factor influencing market sentiment. His promise to ease regulatory pressure on digital assets has fueled expectations that the SEC, under his administration, may become more open to approving crypto-related investment vehicles. This regulatory optimism has led to a flurry of ETF applications, with firms positioning themselves ahead of potential policy shifts.

Meanwhile, the token’s price has responded positively to the ETF news. Trading at $2.92, the token saw a 1.92% increase over the past 24 hours and a 5.73% gain over the week. However, it remains significantly below its all-time high of $5.35, recorded on January 5, marking a 56.5% decline from that peak.

SUI 1D graph coinmarketcap 2
Source: CoinMarketCap

Sui’s Technical Setup Signals Potential Rally

Market analysts are closely watching Sui’s price action, with some identifying bullish technical patterns that could indicate an upcoming rally. Crypto analyst Ted recently highlighted an inverse head and shoulders pattern on the 2-hour chart, suggesting a breakout could be on the horizon.

According to Ted, $2.45 is a crucial resistance zone, and if breached, it could trigger a strong upward movement. His analysis aligns with a broader sentiment of growing institutional interest, with the ETF filings adding further momentum to its potential upside.

SUI
Source: Ted

Another prominent voice, Pushpendra Singh, Co-founder of PushpendraTech, weighed in on March 18, stating, “We’re currently in a strong buying zone, and a breakout to the upside could be imminent.” Singh is eyeing a mid-term target of $7, representing an aggressive 200% potential upside from current price levels. 

Crypto forecasting platform CoinCodex predicts that the token could climb even higher, potentially reaching $7.77 by April 16, 2025. If these forecasts hold, the approval of the Canary SUI ETF could serve as a major catalyst for price appreciation, offering investors a regulated way to gain exposure to the asset.

Related Readings | $CAKE Hits Sweet Spot With 50% Rally and Top 10 Traded Crypto

SEC Retreat? Shocking Crypto Custody Proposal Faces Possible Withdrawal

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Key Takeaways

  • The SEC is considering withdrawing its crypto custody proposal due to strong opposition.
  • The rule aimed to require investment advisers to use qualified custodians for crypto assets.
  • The regulatory approach is shifting toward a more balanced and practical framework.

The U.S. SEC is reconsidering its approach to crypto custody regulations after facing significant opposition. Initially proposed in February 2023, the rule required registered investment advisers to store digital assets with qualified custodians to enhance investor protection.

Even so, SEC Acting Chairman Mark Uyeda admitted the growing challenges in implementing the proposal, suggesting possible withdrawal or reconsideration.

Uyeda emphasized that the scope of the rule caused concerns in the industry. The proposal wanted to apply custody requirements to nearly all assets held by investment advisers, including cryptocurrencies, which many viewed as an overreach.

Stakeholders were concerned about the compliance burden and operational issues, which led the SEC to reconsider. Uyeda said that whatever method is used to regulate, it should be cost-effective and within the authority of the commission under the legislation.

This is a departure from the SEC’s previously aggressive approach under previous leadership. Uyeda’s statement suggests a change in priority, where rules that balance investor protection and practical implementation take precedence.

SEC’s Custody Rule Repeal Signals Shifting Crypto Regulation

The potential repeal of the custody rule is a reflection of broader uncertainty in U.S. crypto regulation. The SEC has increased its oversight of the digital asset sector in recent years, leading to legal challenges and compliance complications.

The rule’s withdrawal is a rare instance of a pullback in regulation, indicating the difficulties in applying traditional financial regulations to digital assets.

Industry leaders have long contended that strict custody regulations might smother innovation and push crypto firms offshore. That the SEC is willing to reconsider its approach is a sign of a desire to be more business-friendly.

This change could also affect institutional investment within the crypto environment, as certainty of regulation remains a key factor in broader adoption.

SEC’s ‘Super-Sized Freighter’ Approach

Beyond cryptocurrency, Uyeda’s words extended into other areas of financial regulation, including ESG disclosures and digital engagement practices. His words suggest a more considered approach to regulation, focusing on transparent guidelines rather than precipitous policy change.

Recognizing the shifting environment, the SEC can strive to establish a regulatory environment that fosters market stability and investor confidence.

In the future, rulemaking by the SEC is going to be done in a cautious manner, with an eye on stability. Uyeda described it as a “super-sized freighter,” suggesting that rule changes could be reconsidered. The commission is also considering delaying compliance deadlines, citing past delays as examples of flexibility.

Related Reading | SUI Blockchain Gains Major Boost as Canary Capital Seeks SEC Approval for First-Ever ETF

SUI Blockchain Gains Major Boost as Canary Capital Seeks SEC Approval for First-Ever ETF

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  • Canary Capital for the first SUI ETF to increase crypto accessibility for institutions.
  • SUI’s momentum grows as Canary Capital targets SEC approval for public ETF launch.
  • Institutional giants like Grayscale are backing Sui, fueling its market expansion.

Canary Capital has filed with the SEC to enable an ETF-tracking SUI token, which serves as the native token for Sui Network. SUI’s financial market development reaches a new milestone through its filing with the U.S. Securities and Exchange Commission (SEC). The SEC’s approval of the filing moves closer to a possible approval that may lead to the token availability on U.S. public exchanges accessible to retail and institutional investors.

Through the ETF, investors gain a secure method to access exposure to the Sui blockchain, which has a proven scalable and efficient operation. According to this new filing, traditional financial institutions show increasing confidence in their blockchain’s limitations by adopting it for next-generation financial product development.

Institutional Interest Continues to Grow

The institutional demand for it’s ecosystem participation keeps escalating, as evident from Canary Capital’s recent filing. During the past six months, major companies such as Grayscale, Franklin Templeton, VanEck, and Ant Financial initiated their network-based projects. These include tokenized funds and exchange-traded notes (ETNs) as instruments demonstrating the increasing value of its blockchain platform for decentralized finance (DeFi), gaming, and enterprise solutions.

Institutional adoption of blockchain technology mainly results from the increasing need for scalable blockchain solutions. The combination of high transaction speed, minimal delays, and strong security capabilities makes the token suitable for acting as a global coordination layer for digital assets. The filing approval by Canary Capital’s ETF demonstrates how traditional financial institutions view the token as a leading platform for blockchain-based financial product development in the future.

Potential Market Impact of the SUI ETF

The ETF approval process creates new avenues for institutional and retail investors to access cryptocurrency markets through managed fund access instead of owning digital assets. ETFs provide regulated and safe investment opportunities that make them attractive to financial institutions and asset management firms that need compliance with existing financial regulations.

The market approval of the ETF will substantially raise it’s liquidity while increasing its market capitalization, resulting in better stability and investor trust. Canary Capital’s crypto ETF strategy represents institutional access to digital assets, which reflects a wider sector trend toward financial institutions investing in cryptocurrencies. The filing occurred while the market price witnessed an upward trend following World Liberty Financial (WLFI) and Sui Blockchain entering a strategic partnership.

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SUI Blockchain Gains Major Boost as Canary Capital Seeks SEC Approval for First-Ever ETF 6

The Sui blockchain has recently surged in popularity, attracting institutional developer teams and investors. The ecosystem advanced its crypto market footprint by reaching more than 67 million accounts and $70 billion in decentralized exchange (DEX) volume. This blockchain delivers success through its speed, scalability, and security, resulting in its adoption by enterprise clients and individual users.

Bollinger Eyes XRP Strength as Bitcoin Falters in Downturn

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  • Legendary trader John Bollinger suggests XRP could become a new market leader.
  • XRP has shown resilience while Bitcoin and other major cryptocurrencies declined.
  • Bollinger commented on XRP’s performance for the first time in years.

Ripple-linked XRP has gained market attention after legendary trader John Bollinger suggested it could emerge as a new leader. The cryptocurrency has shown resilience during recent market downturns, contrasting with Bitcoin’s sharp decline. XRP’s price surge has coincided with growing optimism about regulatory clarity and institutional interest.

Bollinger Weighs In on XRP’s Potential

John Bollinger, who developed Bollinger Bands, indicated his views about the current XRP price action in the market. The public statement about XRP market performance represents his first such disclosure in multiple years. He previously stated in 2018 that he did not possess enough expertise to forecast XRP’s future behavior.

His current comments indicate that XRP demonstrated resilience against price changes that affected the cryptocurrency market. Using an old metaphor, he explained how XRP successfully maintained stability through extreme market changes. His recent observation has activated analysis and trading opinions about XRP’s future.

During an interview, Bollinger dismissed the notion that Bitcoin existed in a bear market because general market trends might favor digital assets. The crypto expert delivers his XRP evaluation during a period where this token tops most major cryptocurrencies in market performance. The market follows XRP to determine if the token will maintain its current success while proving its status as a market leader.

XRP Outperforms Amid Market Downturn

XRP maintains its position of strength as Bitcoin and other major cryptocurrencies experience substantial losses. The digital currency XRP experienced a minor increase of 0.58% on Thursday as Bitcoin dropped by more than 4 percent during a widespread market decrease. During the last four days, investors demonstrated greater interest, leading to a more than 16% increase in the value of XRP.

Market analysts find the major contributors to XRP’s performance reside in increased expectations around regulatory certification. Traders observe that XRP maintains its institutional and retail popularity even though Bitcoin, alongside other altcoins, experiences challenges. The stability that XRP displays during market downturns has established it as an asset that endures market fluctuations.

The superior strength of XRP against other digital currencies indicates that it has the potential for additional price increases. Following its current price trends, the asset shows signs of becoming one of the primary market leaders. The future course of XRP will depend on sustained regulatory advancement and general industry patterns.

Institutional Interest and Legal Clarity Drive Optimism

The crypto market became more excited about XRP after Franklin Templeton filed its request to create an XRP exchange-traded fund. Franklin Templeton joins Bitwise and WisdomTree among other institutions that seek regulatory approval to offer XRP-tied products. The increasing number of institutions entering the space demonstrates their optimistic view of XRP’s future stability.

The court dispute between Ripple and the SEC seems to have reached completion. After paying the authorities $125 million last year, Ripple reportedly seeks improved licensing conditions. The SEC is working on deciding XRP’s legal status, and this process may affect the token’s future market direction.

XRP, SOL, ADA in Government? Deaton Slams SEC Role Speculations

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  • The SEC has not issued any official statement on the roles of XRP, SOL, and ADA in the government.
  • Reports falsely claimed that the SEC recognized XRP for state-level financial transactions and interbank liquidity.
  • A “Comprehensive Proposal” document on XRP was a submitted proposal and not an official SEC statement.

The US Securities and Exchange Commission (SEC) has not released any official statement on the roles of XRP, Solana (SOL), and Cardano (ADA) in the government. Reports suggested that the SEC acknowledged these assets’ potential use under the Trump administration, but XRP lawyer John Deaton dismissed these claims. The controversy highlights the need for reliable sources and official statements before accepting speculative information.

John Deaton Denies SEC XRP Recognition

Multiple reports revealed that the SEC recognized XRP holds characteristics suitable for implementing state-level financial transactions. The reports stated XRP will accelerate state payment processes and enhance liquidity between banking institutions. John Deaton rejected the reports because the SEC has never formally declared XRP suitable for financial transaction use.

Reports disclosed that the SEC had ruled the XRP digital asset as an essential financial healthcare element for the United States nation. A document named “Comprehensive Proposal: XRP as a Strategic Financial Asset for the US” was discovered on the SEC official website by scientific researchers. The analysis contained within the document that had been submitted to the SEC was not considered an official SEC document by Deaton.

The incorrect XRP statement in the crypto world caused experts to start analyzing its real legitimacy. In the beginning, the crypto community thought the SEC formally authorized XRP for financial transactions. In his interview, Deaton confirmed that the regulatory body has made no official announcement regarding this topic.

SEC Has Not Approved SOL for State Use

According to official statements, the SEC chose SOL because this blockchain technology supported swift operations necessary for government functions. Solana (SOL) reportedly enters into instant database systems to establish protected voting platforms that incorporate digital identity solutions. Deaton did not support the claims since he pointed out that the SEC had not made any official declaration of this type.

The reports explained that the SEC wanted SOL to enhance the protection features and operational efficiency of state-level digital systems. The reports indicated to many people that Solana was pursuing potential opportunities in government work with blockchain systems. The Securities and Exchange Commission has not made any statement regarding SOL’s involvement in state-level applications.

The unverified news transmission caused SOL investors and blockchain platform developer uncertainty. Investors developed the belief that Solana would secure a place in the United States digital infrastructure projects. Deaton proved the critical need for investors to validate their data by checking official, credible sources.

Deaton Clarifies ADA Government Role Misconception

ADA has received approval from the SEC according to multiple sources which allows it to authenticate degrees perform smart contracts operations and manage infrastructure securely. These reports indicate that the implementation of the ADA blockchain allows governments to provide services through secure platforms that maintain safe data along with operational efficiency. The SEC has not released any formal stance regarding using ADA, according to Deaton.

A supposedly unofficial SEC document stated that the ADA served as a security system for identity verification. The declaration prompted numerous readers to confirm that Cardano had sufficiently demonstrated readiness to handle governmental software projects. However, the United States Securities and Exchange Commission has failed to disclose official information about ADA system deployment in its work.

The cryptocurrency market began to expect more about ADA because people misunderstood its standing. Investors and blockchain users sought to understand whether Cardano had secured official recognition from the government. According to Deaton the SEC has released no official statement regarding Cardano, which disproves all wrong information.

Vermont Ends Coinbase Staking Case, Following SEC’s Decision to Withdraw Lawsuit

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  • Vermont drops Coinbase case after SEC abandoned similar action on February 28, 2024.
  • Coinbase urges other states to follow Vermont in recognizing staking isn’t security.
  • SEC’s crypto retreat follows Gensler’s resignation on January 20, signaling regulatory shift.

Vermont’s Department of Financial Regulation has abandoned its legal action against Coinbase, which accused the exchange of offering unregistered securities through its staking service. This decision, announced on March 13, follows the U.S. Securities and Exchange Commission’s (SEC) move to drop its own case on February 28.

The state’s regulatory authority pointed to the potential introduction of new federal guidelines as a primary reason for its decision. “In light of the dismissal of the Federal Action and likelihood of new federal regulatory guidance, the Division believes it would be most efficient and in the best interests of justice to rescind the pending Show Cause Order, without prejudice,” the department stated.

SS
Source: Vermont’s Department of Financial Regulation

Coinbase, which has long insisted that staking does not classify as a security, welcomed Vermont’s decision. Chief Legal Officer Paul Grewal took to X on March 13, urging other states to follow suit.  “staking services are not securities. We applaud Vermont for embracing progress and providing clarity for its citizens who own digital assets,” Grewal added.

Regulatory Shift in Coinbase Staking Case

The controversy dates back to June 2023, when the SEC sued the exchange, prompting several states—Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin—to take parallel legal action. They issued show cause orders, alleging it violated securities laws by providing staking services without a license.

The order required the exchange to provide a reason why the courts shouldn’t order them to halt the service. Vermont has now stepped back, signaling a potential shift in how regulators may approach staking moving forward.

Grewal sees this as an opportunity for broader regulatory change. “Our work isn’t over,” urging Congress to capitalize on growing bipartisan support in both chambers to enact comprehensive legislation. Policies must address the unique characteristics of digital assets, including staking, to ensure effective regulation, he stressed.

Broader SEC Retreat on Crypto Cases

Vermont’s decision comes as the SEC has been retreating from several high-profile crypto enforcement actions. The change comes after the resignation of former SEC Chair Gary Gensler, recognized for his firm approach toward cryptocurrency, who stepped down on January 20.

Meanwhile, a legal matter concerning the cryptocurrency trading firm Cumberland DRW reached its conclusion, with the SEC dropping charges on March 4. Additionally, the extended legal battle between Ripple Labs and the SEC, which has persisted for over four years, seems to be nearing its final stages.

The exchange is seeking more transparency on past SEC actions. It has filed a Freedom of Information Act request to uncover how many crypto-related enforcement actions occurred under Gensler’s leadership and their cost to taxpayers.

Related Readings | Solana Governance Vote Sets Record as Inflation Proposal Fails

XRP Settlement Nears: SEC’s Ruling Could Trigger 300% Surge

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  • XRP could surge 300% to $2.55 if the SEC settlement favors Ripple.
  • Ripple seeks reduced penalties from the SEC, challenging the $125M fine.
  • Franklin Templeton filed for an XRP ETF, with a 60% approval chance.

The XRP community is closely watching for a potential settlement in the ongoing lawsuit between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC). Recent reports indicate that the Ethereum Initial Coin Offering (ICO) might influence the terms of the agreement, raising questions about XRP’s future classification.

Fox Business Senior Correspondent Charles Gasparino disclosed that the addressing of a key question is whether Ripple will convert to a utility rather than a security. Gasparino, from a supposed interview, said that Ethereum’s initial ICO is in many ways similar to the XRP issuance, and it is that which is the most important factor that will decide the issue.

Ethereum’s ICO and XRP’s Legal Struggles

Ethereum initially conducted an ICO to fund its development, much like XRP. However, SEC has considered Ethereum a commodity, whereas, Ripple is in trouble for purportedly selling unregistered securities. Current debates indicate that Ripple might be considered a commodity, which poses formidable consequences on coming litigations regarding crypto assets.

Ripple’s CTO David Schwartz has been aggressively defending Ripple from the criticisms that are comparing XRP with Ethereum, as  it was pre-mined and never distributed through an ICO. If Ripple is classified as a commodity,  could set a precedent for other cryptocurrencies, which are in the same situation with regulatory authorities.

The court battle turned in July 2023, when US District Judge Analisa Torres held that Ripple is not security when it is sold on secondary markets. But simultaneously, she held that the direct sales by Ripple to institution buyers were violations of the security laws, the grounds for the imposition of the $125 million fine and the prohibition against the sale to institutions.

Ripple’s attorneys are reported to be negotiating to modify these penalties, especially against the background of new SEC policies. No final determination by the regulator has yet been made, and the SEC and Ripple have kept the settlement discussions under wraps. Conclusion to this case would establish the tone for the regulatory environment for digital currencies.

Ripple Price Target Set at $2.55

Market analysts believe that a favorable settlement could trigger a substantial XRP price rally. If legal clarity emerges, technical indicators suggest XRP could surge to $2.55, with further gains targeting the $3 resistance level. Investors are closely monitoring negotiations for any significant updates.

chart 1 11zon 8718891e7c
XRP Chart

Fox Business reporter Eleanor Terrett noted that delays in the settlement stem from Ripple’s legal team seeking more favorable terms, particularly regarding the imposed $125 million fine. The argument suggests that if the SEC’s new leadership is reversing enforcement actions on past crypto cases, Ripple should not face penalties.

Meanwhile, asset managers are showing a growing interest in Ripple. This week, Franklin Templeton filed for a spot Ripple exchange-traded fund (ETF), making it the largest financial institution to do so. Bloomberg analysts estimate a 60% approval chance for an XRP ETF, citing the SEC’s evolving regulatory stance.

Read More: Ripple CTO: XRP-Only System Possible but Limits Growth


Ripple’s $125M Fine in Question as SEC Case Reaches Final Stage

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Key Takeaways

  • The SEC vs. Ripple case is nearing its conclusion, with ongoing settlement negotiations.
  • Ripple aims to secure better terms, questioning the fairness of penalties amid shifting regulatory policies.
  • The case’s delay stems from complexities surrounding the legal implications of accepting the August 2024 ruling.

The prolonged battle in the courts by the U.S. Securities and Exchange Commission (SEC) against Ripple appears to be reaching its final stages.

Reports suggest that the delay in the conclusion of the case is because the company’s lawyers were negotiating more favorable settlement terms following the August 2024 ruling.

That decision also entailed the imposition of a fine for $125 million and the barring of the company selling XRP to institutional buyers. But with the new direction for the SEC with new management, Ripple asserts that the continuation of such penalties would be unfair.

The business argues that if the SEC is rethinking its stance in the enforcement actions against the crypto businesses, its case should be no exception.

One big worry for the company is that to acquiesce to the ruling would be to acknowledge fault, which can have serious legal and financial implications in the future.

The internal doubt at the SEC regarding its prior enforcement actions makes the problem even more intricate. This has led to lengthy discussions because the company does not want to see the creation of a precedent that will restrict its business activities, including future offering of securities.

Ripple Seeks Relief Amid Changing SEC Policies

The evolving regulatory landscape has played its role in the ongoing controversy. During the previous administration, the SEC enforced crypto-enforcement with great zeal and filed cases against several companies, including Ripple.

Nevertheless, recent developments suggest policy realignment, with the agency reconsidering its past approaches to cases. If the new SEC administration makes changes to enforcement policies, the fine on Ripple can be deemed excessive in light of new standards.

This has opened the door for the possibility that Ripple is leveraging this shift to negotiate for a better settlement. There are speculations that the organization can try to vacate certain aspects of Judge Torres’ decision, particularly findings of the violation of the security law.

If successful, this would lift the prohibitions that would hamper Ripple’s future business transactions, including an initial public offering (IPO) or other security-related transactions. The protracted timeline for the case shows that the two sides are considering carefully the potential implications before striking an agreement.

The result of the SEC vs. Ripple lawsuit will most likely have a significant impact on the entire crypto space.

Related Reading | MoonPay Acquires Stablecoin Firm Iron in $100M Deal

SEC Reviews Fidelity’s Proposal to Add Ethereum Staking to ETF

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  • The SEC has received Fidelity’s proposal to add Ethereum staking to its FETH ETF.
  • Investors could earn staking rewards without managing the process themselves.
  • The SEC’s review could take months, potentially setting a precedent for crypto ETFs.

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged receipt of a pioneering proposal from Fidelity Investments. The proposal, made by the Cboe BZX Exchange, is intended to add Ethereum staking features in Fidelity’s Ethereum Spot Exchange-Traded Fund (ETF), FETH. This proposed amendment, if implemented, would add staking rewards in FETH, allowing investors to earn passive income in a novel way while interacting with the network of Ethereum.

Screenshot 5

The SEC’s confirmation is a pivotal moment in the regulatory approval process. With the SEC now beginning consideration, Fidelity’s staking plan hangs in the balance. That being said, the announcement that the commission has reported receiving the proposal is a good sign that the regulatory body is considering the proposal in earnest, something that has the potential to transform the way that investors interact with Ethereum-based products.

At the center of Fidelity’s proposal is the transition by Ethereum from a proof-of-work (PoW) to a proof-of-stake (PoS model), something that has garnered much interest in the world of cryptocurrency. Ethereum staking involves locking up ETH tokens to finance the operation of the Ethereum network, now supported by validators, rather than by miners. In return for this “staking,” members earn a reward in the way of additional ETH tokens, which provides them with a passive income stream.

if approved, Fidelity’s FETH ETF would enable investors to be a part of this staking process without having to deal with the technicalities themselves. Instead of holding Ethereum directly and staking it themselves, investors would be in a position to earn staking rewards through mere possession of shares in FETH. This would make Ethereum investments more appealing, particularly for individuals with little technological expertise or the means to stake ETH themselves.

By more directly linking its ETF with the network on Ethereum, Fidelity would make its investment product unique as a single product in the rapidly evolving crypto market. The movement towards staking features would not only maximize the potential for yields but would also capitalize on the growing demand for more convenient methods for interacting with blockchain networks.

SEC’s Review of Fidelity’s Staking Proposal and Ethereum ETFs

The SEC consideration is most important in the future of cryptocurrency-based investment products, specifically in this proposal. Historically, the SEC has been cautious in approving investment products that are cryptocurrency-based, delaying approval of such propositions and asking for more clarification. The commission has historically withheld approval for Bitcoin-based ETFs and other crypto-based financial products, citing market manipulation, security risks, and investor protection.

However, the SEC review of Fidelity’s staking proposal is a signal that it is shifting course in how it is embracing crypto innovation. In the event that this is granted, it would be a turning point for the industry, enabling other financial institutions to integrate such features in their products.

The introduction of staking into ETFs could change the way investors perceive and interact with digital assets, offering a more familiar and less technically demanding route to earning rewards from cryptocurrency networks.

SEC Approval Could Change Staking ETFs

The process for approval of such propositions is long and cumbersome. The SEC review of Fidelity’s proposition is likely to take several months, with the commission scrutinizing very carefully the prospective risks and advantages of incorporating staking in a conventional investment vehicle such as an ETF.

It is not a guarantee that the proposal will be accepted, but the fact that the acknowledgment of receipt is evidence that the SEC is weighing the impact this innovation would bring about in the market. Acceptance of Fidelity’s proposal, if it occurs, would be a huge win for the company and the cryptocurrency and traditional finance markets in general.

The inclusion of staking rewards in a mainstream investment vehicle such as an ETF would spur other financial institutions to look at such offerings, which would lead to a wave of innovation in the crypto space. It would also demonstrate that the SEC is ready to sanction innovative, forward-looking products that combine traditional finance with the fast-emerging world of decentralized finance (DeFi).

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