Outside Source
TL;DR
- The Ripple v. SEC legal battle may be nearing a resolution after a court ordered the company to pay a $125 million fine, significantly less than what the regulator initially sought.
- Speculation of a settlement persists, but no official confirmation has been made. XRP’s price keeps underperforming amid broader market declines.
The Next Big News or Just Rumors?
The legal battle between Ripple and the US Securities and Exchange Commission (SEC), which has been ongoing for over three and a half years, has finally moved toward its closing chapter.
Recall that the regulator sued the company in December 2020, accusing it of raising more than $1.3 billion through the sale of XRP in an unregistered securities offering. Last month, Judge Torres ruled that Ripple must pay a $125 million fine for violating certain securities laws. The sum is just a fraction of the $2 billion the SEC initially sought, which caused numerous industry participants to describe the decision as a major win for the firm.
Two of Ripple’s top executives – CEO Brad Garlinghouse and CLO Stuart Alderoty – said the company respects the court’s ruling, promising to pay the penalty.
Many members of the XRP community have recently speculated that the organization will settle with the SEC as soon as this week. X user JackTheRippler went even further, claiming that the company had already paid the fine.
It is worth noting that both Ripple and the SEC have remained silent on the matter, meaning the potential upcoming development could simply be speculation from the XRP Army, which might be eagerly waiting for the official end of the lawsuit.
While paying the sum could be part of a settlement agreement, it would not necessarily mean the battle is over. Both parties will have to agree to terms that fully resolve the dispute. The SEC has the right to appeal the ruling until early October.
XRP Price Outlook
The valuation of Ripple’s native token has not been positively impacted by the aforementioned rumors. It remains deep in the red on a weekly scale, currently trading just south of $0.55 (per CoinGecko’s data). Its poor performance coincides with a broader decline of the entire cryptocurrency market, with Bitcoin (BTC) plunging below $58,000 and Ethereum (ETH) losing the $2,500 resistance level.
XRP’s price usually experiences enhanced volatility after official announcements related to the Ripple v. SEC case. For instance, it exploded by 70% last summer when the company secured its first partial court victory. The price soared by double digits once again following the latest court ruling in August.
This article first appeared at CryptoPotato
