The cryptocurrency market is experiencing some interesting developments as legal cases involving crypto firms are being dropped. This could open the door for new financial products like Exchange-Traded Funds (ETFs) and futures for these assets.
Several cases by the SEC that previously caused uncertainty for popular cryptocurrencies, such as XRP, Solana, and Cardano, have been dropped. This removal of legal uncertainties means that questions about whether these coins are considered securities, as seen in cases with Robinhood, Coinbase, and Kraken, are now less significant.
Bloomberg ETF analyst, James Seyffart, explained in an interview that these cryptocurrencies were once mentioned directly in the SEC cases, which made exchanges dealing with them unregistered securities exchanges. With these legal challenges disappearing, there is now a clearer path for these coins to be involved in future financial products.
However, XRP’s legal situation is still complex. Ripple’s lawsuit with the SEC is still ongoing, and the outcome of this case will determine whether XRP can participate in an ETF or other financial products. Although Ripple has won some parts of the case and others are being appealed, Seyffart believes that an XRP ETF is still a strong possibility in the future, despite the legal complexities.
Regarding XRP futures, Seyffart noted that while they don’t currently exist, they could be launched soon as legal barriers decrease. He emphasized that spot products, including ETFs that hold these cryptocurrencies directly, would likely be the most successful in the U.S. market.
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