Ripple has made the official announcement that the U.S. Securities and Exchange Commission (SEC) will be lifting the injunction on the company. This development came in Ripple’s Q1 2025 XRP Markets Report, a noteworthy twist on the legal action that started way back in December of 2020.
This marks Ripple’s first explicit acknowledgment of the SEC’s motion to vacate the permanent injunction, a step that may allow Ripple to trade more freely with institutional investors.
Market Valuation Concerns
Against this background, experts like Jeff Dorman have cautioned against the current market value of XRP. Dorman describes XRP as “insanely overvalued,” and that its price increase stems from social hysteria rather than serious financial data.
He highlights that XRP lacks a solid foundation in real-world use and remains far from widespread adoption in its intended roles within institutional finance. According to Dorman, XRP resembles equities like GameStop, where community sentiment drives the price rather than fundamentals.
Institutional Adoption on the Horizon
In spite of such valuation issues, Ripple CTO David Schwartz was optimistic about XRP’s future. While giving a recent interview, Schwartz declared that a mass institutional adoption is imminent. Institutional involvement is instrumental in widespread blockchain usage and declared, “We really are on the cusp of a mass institutional adoption.” Schwartz further said that the incorporation of blockchain technology with existing financial systems is key to widespread adoption and includes finance.
As Ripple navigates its legal challenges and market valuation concerns, the options for XRP to take its rightful place at the centre of institutional finance still remain. Given the SEC filing for the elimination of the injunction and Schwartz’s optimistic projections of institutional adoption, XRP may be able to see some colossal changes in the dynamics of the market. Generally, stakeholders and investors will closely track these developments as they progress.
