Ripple has faced scrutiny since December 2020 when the SEC sued it for alleged illegal securities offerings through XRP sales. Despite partially winning some court rulings, Ripple was fined 125 million USD, which is notably less than the 2 billion USD originally sought by the SEC.

Jeremy Hogan posits that a legal settlement may precede XRP ETF approvals, predicted to take longer due to regulatory processes. Analyst James Seyffart suggests a 65% chance for ETF approval by late 2025, with filings potentially recognized by the SEC soon.

The recent 60-day pause in legal proceedings between Binance and the SEC has raised hopes for a similar truce between Ripple and regulators. The new SEC chairman, Mark Uyeda, is reportedly more amenable to cryptocurrencies than his predecessor, potentially paving the way for a resolution.