In the Ripple case, the SEC will not rule before 2026, this will create uncertainty...

Ripple's long-standing legal battle with the SEC remains unresolved, delaying the company’s ability to fully participate in several bullish market cycles. Last week, the U.S. Securities and Exchange Commission (SEC) announced that it would appeal the recent ruling in the case, meaning a final decision is still far off for this multi-year dispute.

The appeal process is expected to take time, with some estimates suggesting a final verdict might not be reached until 2026. This extended timeline raises important questions about the impact of further delays on Ripple and its XRP token.

SEC vs. Ripple: A Legal Case That Lingers On

While the case won’t restart from scratch, the appeal introduces additional delays, which will likely dampen investor sentiment around XRP. For years, investors have been waiting for a resolution, hoping it would restore confidence not only in XRP but in the broader crypto market, which has seen its institutional trust shaken by this high-profile legal battle.

However, this delay could have an upside for Ripple, as argued by legal expert and crypto enthusiast James Murphy. Murphy suggests that Ripple might benefit from filing its own appeal. After all, the company was fined $125 million for selling XRP to institutional investors in violation of securities laws. This fine is a middle ground between the SEC’s initial demand for billions and Ripple’s efforts to reduce the penalty after a lengthy negotiation process.

Although the judge acknowledged some wrongdoing on Ripple's part, this doesn't completely invalidate the SEC's charges. The ruling could set a legal precedent, influencing future cases related to cryptocurrency regulations. Moving forward, Ripple will need to carefully manage its collaborations with large corporations to avoid further regulatory scrutiny.

Will Ripple Thrive with the Introduction of XRP ETFs?

Ripple is now facing another challenge as asset managers have submitted a request to list XRP exchange-traded funds (ETFs). Much like with Bitcoin and Ethereum ETFs, the SEC will have to weigh in on the matter. While Ripple won’t be directly involved in this process—since the investment firm Canary Capital is handling the application—the approval of XRP ETFs could make the token more accessible to traditional investors, potentially bringing a wave of new interest to XRP.

The approval of Bitcoin ETFs earlier this year led to a significant spike in trading volumes and, ultimately, a price increase. On the other hand, Ethereum ETFs had a more subdued impact, and ETH's price has struggled since. XRP's price took a sharp hit after news broke about the SEC's appeal. While it traded above $0.65 in early October, it has since dropped to just above $0.50. This decline highlights the market's need for positive news, like the rapid approval of XRP ETFs, to push the price back to $0.55 or higher.

Currently, XRP faces resistance at key price levels. Without a major positive development, such as ETF approval, Ripple’s price could continue to slide. The long/short ratio is now below 1, signaling a potential bearish trend.

Uncertainty Fuels Calls for Portfolio Diversification

The extended uncertainty surrounding Ripple’s legal battle and the potential delays until 2026 are increasing investor unease. The unresolved conflict between the SEC and Ripple will continue to cloud the crypto space for some time. As a result, many traders are beginning to reconsider their positions in XRP, viewing this period as an opportunity to diversify into other cryptocurrencies.

With the ongoing legal proceedings and the regulatory landscape still uncertain, diversifying investment portfolios could help investors manage risk and maximize returns even in bearish phases. For those wary of XRP’s prolonged legal entanglements, exploring other assets might provide more stability and growth potential in the near term.