Garlinghouse, the CEO of Ripple, announced the development a few hours after U.S. District Judge Analisa Torres denied the parties’ joint motion for an indicative ruling. 

As previously reported, the judge denied the parties’ joint motion seeking to modify the final judgment by reducing the penalty from $125 million to $50 million and lifting the permanent injunction imposed on Ripple’s future XRP sales to institutions. 

In the latest verdict, Judge Torres urged the parties to either continue their appeals in the Second Circuit or withdraw them and accept her final judgment. 

Following the decision, Garlinghouse confirmed that Ripple would drop its cross-appeal, which contested the court’s decision on the company’s historic institutional sales. Notably, the Ripple CEO expects the SEC to follow suit and drop its appeal–challenging the verdict on the company’s programmatic sales of XRP. 

With the SEC and Ripple dropping the appeal and cross-appeal, Garlinghouse said they are closing the chapter once and for all. This could bring the lawsuit to an end. 

In the meantime, Garlingouse disclosed that the company will now focus its attention on “building the internet of value.” 

Following Garlinghouse’s comments, Nate Geraci, the President of ETF Store Inc., suggested that ending the lawsuit effectively removes the regulatory barrier blocking the approval of spot XRP ETFs. 

For context, more than ten asset managers, including 21Shares and Bitwise, have filed with the SEC to launch XRP ETFs. However, many believe the SEC would not approve any of the applications due to its legal tussle with Ripple. 

Since the parties are dropping their appeals, Geraci believes that this move clears the way for the approval of the XRP ETF. This indicates that the SEC cannot reference the case as a reason to deny or delay the multiple XRP ETF applications on its desk. 

Interestingly, Geraci suggested that, with no regulatory obstacles in sight for XRP, big issuers like BlackRock can also apply to launch an ETF tied to the coin. BlackRock has yet to file for an XRP ETF despite growing institutional interest in the coin. 

Speculation suggests that the SEC lawsuit was the main factor hindering BlackRock from filing for an XRP ETF. With the XRP regulatory obstacle finally over, following the parties’ decision to drop their appeals, BlackRock can confidently apply for XRP ETF if it chooses. 

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