BlackRock steers clear of XRP ETF launch amidst SEC v. Ripple lawsuit
|- BlackRock has decided to steer clear of an XRP ETF according to a Fox Business reporter.
- The SEC’s lawsuit against Ripple rages on, despite Judge Torres’ ruling, XRP remains in a regulatory “gray” area.
- XRP price bleeds nearly 4% on the day, declines to $0.5291.
The Securities and Exchange Commission’s (SEC) lawsuit against Ripple continues in 2024. As the payment remittance firm is embroiled in the legal battle, a Fox Business reporter has commented on whether the asset management giant will support the XRP ETF.
Following the SEC’s approval of a Bitcoin Spot ETF, XRP holders are awaiting the launch of an XRP ETF.
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Asset management giant not likely to support XRP ETF
BlackRock, one of the largest asset managers, is unlikely to support an XRP ETF according to Fox Business Reporter Charles Gasparino. The report is relevant since the SEC v. Ripple lawsuit rages on in 2024.
According to the latest development in the lawsuit, the payment remittance firm has filed its response to the regulator’s motion to compel, as on January 20. The case continues to garner interest in the XRP holder community.
SCOOP: @BlackRock has no plans for a spot $XRP ETF, according to people with direct knowledge of the matter story developing
— Charles Gasparino (@CGasparino) January 18, 2024
SCOOP: @BlackRock has no plans for a spot $XRP ETF, according to people with direct knowledge of the matter story developing
— Charles Gasparino (@CGasparino) January 18, 2024
Despite Judge Torres’ ruling on XRP sale on exchange platforms, stating that the asset is not an “investment contract,” the altcoin is a regulatory gray area. It is likely that BlackRock steered clear of XRP ETFs since there is not adequate clarity on XRP’s status as a security or non-security.
The lawsuit’s final outcome is expected to shed light on XRP’s status.
SEC v. Ripple lawsuit: What’s next
Ripple’s attorneys have opposed the SEC’s motion to compel. This is a motion that requires the defendant to share information and facts about the case. The SEC requested the court to order Ripple to share 2022-2023 financial statements and post-complaint contracts governing XRP institutional sales on January 11. Post-complaint refers to the period of time after the SEC first filed its charges.
The regulator expects Ripple to respond to questions relating to post-complaint XRP institutional sales proceeds. Ripple is arguing, however, that the regulator had adequate time to request post-complaint documents in the fact discovery phase of the lawsuit. This ended on August 31, 2021. Thereafter, the SEC did not question the post-complaint conduct of the payment firm and it remained irrelevant to the lawsuit.
Ripple argues that the SEC should not be permitted to reverse course and the post-complaint conduct is irrelevant to the case. The SEC is likely looking for evidence to note whether Ripple continued non-compliance with securities laws after the charges were filed against the payment remittance firm.
If the SEC finds this to be true, the Judge presiding the case could inflict a penalty on Ripple.
At the time of writing, XRP price is $0.5291, with the altcoin continuing its decline this week.
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