Ripple executives' recent statements have revealed an important signal: the near-term momentum of XRP gains hinges not on the protracted legal debates with the SEC, but on the actual pace of institutional investor entry.

This judgment is supported by several factors. First, Ripple has made phased progress in its litigation with the SEC, laying the groundwork for subsequent improvements in the policy environment. Second, from a market perspective, institutional capital has indeed been increasing its focus on tracks like stablecoins and cross-border payments, and XRP is positioned at the core of this sector. Third, the cryptocurrency regulatory framework that the US may advance would create positive expectations for relatively compliant projects like Ripple.

However, there are several points worth noting. Executive statements tend to carry an optimistic tone, which is completely normal, but the actual pace of regulatory changes may fall far short of market expectations—SEC policy shifts have never been smooth sailing. Second, institutional capital inflows typically occur in two phases: first quiet position-building, then concentrated price increases, and this process requires patience. Finally, market sentiment is easily impacted by external events; if negative signals suddenly emerge on the regulatory front, retail investors may rush to exit, causing short-term adjustments.

Simply put, the current situation is somewhat like waiting for a traffic light. When the regulatory framework is unclear, both institutions and retail investors are watching; once policy direction is confirmed, a window of rapid gains may open. The key question is when this window opens and how long it will remain open—these elements remain full of variables.