A significant legal overhang for XRP has been resolved. While the settlement with the U.S. Securities and Exchange Commission (SEC) in summer 2025 provided initial relief, a recent appellate court decision has now addressed a remaining area of uncertainty. Market observers suggest this development could be a pivotal factor for institutional investment consideration.
Appellate Court Upholds Dismissal of Class Action
On January 27, the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of the class-action lawsuit Sostack v. Ripple Labs. The court’s ruling centered on the statute of limitations, determining that claims regarding unregistered securities sales were time-barred because XRP had been publicly offered since 2013.
A crucial aspect of the decision was the court’s rejection of the plaintiffs’ secondary argument. They had contended that distributions made in 2017 should be considered a “new offering.” The court dismissed this view. In essence, this ruling removes another layer of legal ambiguity concerning XRP’s status on secondary markets—a key consideration for larger, institutional market participants.
ETF Flows Show Resilience Amid Price Weakness
Despite recent price corrections, capital flows into the Bitwise XRP ETF—which launched in late 2025—have demonstrated notable stability. Data indicates the fund recorded net inflows of approximately $7.16 million on January 16 alone, with positive activity persisting through the end of the month.
This divergence between price action and fund flows is significant. It suggests that some market segments are viewing price pullbacks as potential opportunities, a sentiment likely bolstered by the improving regulatory landscape.
The market pressure is evident in the current valuation: XRP is trading at $1.75, marking a new 52-week low.
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Key Developments Summarized:
* The class-action lawsuit has been definitively dismissed based on the statute of limitations, referencing XRP’s public offering from 2013.
* The argument that 2017 distributions constituted a “new offering” was rejected by the court.
* The Bitwise XRP ETF reported consistent inflows during the market correction, including a single-day inflow of +$7.16 million on January 16.
Network Utility Enhanced by RLUSD Stablecoin
Beyond legal proceedings, network utility remains a focal point. The stablecoin RLUSD, launched officially in December 2024, is reportedly becoming an integral part of the settlement infrastructure on the XRP Ledger. The concept pairs XRP for liquidity with RLUSD’s stability, particularly for cross-border payment flows where cryptocurrency volatility poses an operational risk.
This integration has coincided with increased network activity. On-chain data, while not providing specific figures, indicates that the combined system of XRP and RLUSD may be generating more organic transaction volume. This could lead to network revenue becoming less dependent on purely speculative trading activity.
Market Drivers for February
Looking ahead to February, market expectations appear focused on three primary catalysts: key technical price levels, the sustainability of ETF inflows, and potential final procedural steps or signals from U.S. regulators—including developments in stablecoin regulation.
One technical level stands out as particularly tangible: A sustained recovery above the $2.00 mark would be viewed by many traders as a potential signal that the corrective momentum from January is waning.
The conclusion of this major civil case has eliminated a central legal risk. If ETF inflows remain steady and RLUSD continues to support real-world usage, XRP enters February with a fundamentally stronger foundation of regulatory clarity and market access than it possessed just months ago.
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