The legal clarity of XRP has an irony – banks are still afraid of Torres trading units

Six months after the US Securities and Exchange Commission (SEC) officially ended its crackdown on Ripple, a strange contradiction has appeared: US institutions are aggressively withdrawing from XRP as they prepare to launch an exchange-traded fund (ETF).

At the time of writing, it was The price of XRP trade on $1.22down significantly from its July 2025 peak of $3.65.

Despite the “legal clarity” that was celebrated in August, institutional involvement seems to have wavered. While Bitwise and WisdomTree updated their S-1 filings in October — raising their approval ratings to about 95% certainty — open interest (OI) has fallen. About the future of organizations and 73% Starting to settle.

Evidence

Solution: A mutual agreement in August 2025 confirmed a fee of $125 million On the historical trade. Additionally, the SEC dropped its complaint, upholding the 2023 ruling that secondary sales of XRP do not constitute securities.

Differences:

• ETF trends: It shows sending conversions Gray GXRP (November 2025) and Bitwise Amendment No 4 to the nearest approval.
• Live Streams: On-chain data shows the outflow of $405,000 from institutions in the last 24 hours and the impact… The price of XRP.

Actions and expectations

The Paul Atkins Factor: New SEC Chairman’s ‘Project Crypto’ Initiative Has Lowered Standing, But Banks Remain Paralyzed by Judge Analisa Torres’ Famous Statement Chudunji Institutions and security.

ENTERTAINMENT:

SEC RESPONDS TO PROJECT CRYPTO TO STORE ALL TYPES ON ONCHAIN. pic.twitter.com/BNRqB2M6hE

– Crypto Rover (@cryptorover) July 31, 2025

Next step: The market is expected to accept the spot ETF by the time it arrives The second part of 2026. Even then, the fee income will remain weak.

Organizational thinking

Don’t Misinterpret Future Damage (What are crypto futures contracts?) as a decrease; that this Acceptable change. The Torres ruling created a toxic asset class for US banks: holding XRP directly The balance sheet still has the shame of “institution sales”.

ETF is the source. It places “conformally sensitive” property in “pure” security (19b-4). The smart money is losing the signal to destroy the ETF, the risk of tracking the trade and the 34 management fee. Expect open interest to remain dead until the ETF continues.

A note The legal clarity of XRP has an irony – banks are still afraid of Torres trading units appeared for the first time Cryptonews Arabic.

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