BlackRock withdraws from XRP spot ETF idea amid Ripple-SEC litigation

BlackRock withdraws from XRP spot ETF idea amid Ripple-SEC litigation

According to a report by de.beincrypto.com, BlackRock is backing away from the idea of ​​an XRP spot ETF due to the ongoing legal battle between Ripple and the SEC. This decision signals a cautious stance among major financial players towards cryptocurrencies, especially in times of regulatory uncertainty. The regulatory ambiguity poses a significant obstacle for financial firms like BlackRock that are concerned about regulatory compliance and risk management.

According to Charles Gasparino, senior reporter at Fox Business, the rejection of BlackRock's XRP Spot ETF is due to the ongoing dispute between the SEC and Ripple. In an interview with CNBC, Ripple CEO Brad Garlinghouse called SEC Chairman Gary Gensler a “political liability,” underscoring the growing tensions in the crypto world.

Market sentiment surrounding Ripple continues to complicate BlackRock's position. Technical analyst Ali Martinez warned of a possible price decline for Ripple if the key support level of $0.55 is not held. A break below this level could result in a significant price decline and push the XRP price to $0.34.

These developments clearly show that major financial players in the crypto space are becoming more cautious due to regulatory uncertainties. As long as the litigation between Ripple and the SEC continues, it will serve as a precedent for the treatment of digital assets under US law. Until there is more clarity and stability in the regulatory environment, large institutions will likely continue to wait. This could potentially lead to a decrease in Ripple’s trading volume and push the price further downwards.