Crypto researcher SMQKE (@SMQKEDQG) recently drew attention to BlackRock’s acknowledgment of the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), emphasizing its potential implications for Bitcoin and the broader cryptocurrency market.
In a post on X, SMQKE shared images from BlackRock’s recent filing, which explicitly references the SEC’s case against Ripple as a precedent for regulatory risks. This recognition by the world’s largest asset manager signals growing institutional concern over how U.S. regulators classify digital assets.
Yes, BlackRock is closely following the Ripple V. SEC case.😏💨
This is documented.📝
They know.😮💨 pic.twitter.com/zRiukyPvtd
— SMQKE (@SMQKEDQG) March 14, 2025
BlackRock’s Stance on Regulatory Risks
BlackRock’s filing highlights the risks associated with the SEC classifying Bitcoin as a security. The firm warned that any enforcement action asserting such a classification could have an immediate and material impact on Bitcoin’s trading value, liquidity, and accessibility within U.S. markets.
To illustrate this risk, BlackRock cited the SEC’s lawsuit against Ripple, which led to a drastic decline in XRP’s market capitalization from over $100 billion to under $10 billion following the complaint.
By drawing a parallel between Bitcoin and XRP, BlackRock signals that the SEC’s unpredictable regulatory actions could create significant financial instability. The firm’s concerns align with broader industry sentiment that regulatory clarity remains one of the biggest hurdles for cryptocurrency adoption.
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What Could This Mean for XRP?
Despite the SEC’s historical resistance, BlackRock’s decision to file a spot Bitcoin ETF application showed the agency’s evolving stance and willingness to take risks. SEC Chair Gary Gensler has previously opposed cryptocurrency-related financial products and refused to issue clear regulations on digital assets.
BlackRock’s explicit reference to Ripple v. SEC highlights the case’s influence on institutional decision-making. If Bitcoin were ever classified as a security, the consequences could be severe, mirroring what happened to XRP.
However, despite his anti-crypto stance, Gensler approved Bitcoin ETFs in early 2024. Now, over a year later, Gensler is out of office, and the SEC has shown a shifting stance toward the crypto market.
The regulator has dismissed multiple crypto-related lawsuits and investigations, and recent reports have revealed that Ripple and the SEC are negotiating a settlement . A crypto expert recently mentioned a BlackRock XRP ETF as a major driver for price growth .
SMQKE suggested that BlackRock knows the importance of XRP, and the asset manager could make another foray into crypto ETFs once the lawsuit ends.
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