Ripple Vs SEC Lawsuit: Settlement Debates & XRP Price Fall Concerns

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Based on recent developments regarding Ripple and the SEC, there have been numerous speculations about a potential settlement in the ongoing SEC vs. Ripple Labs legal dispute. These theories gained traction following the disclosure of a March 29 court document revealing that a settlement conference had taken place between the two parties.

Prior to the scheduled settlement talk, the SEC petitioned the court for a definitive ruling against Ripple, along with approximately $2 billion in fines for alleged breaches of Section 5 of the Securities Act of 1933 and unregistered institutional XRP sales. Ripple’s top executives, Brad Garlinghouse and Stuart Alderoty, criticized the SEC and vowed to reveal its inner workings.

Ripple Vs SEC Pre-Trial Conference

The debate over Ripple’s legal battle with the SEC began when the Southern District of New York (SDNY) Court’s schedule indicated a “Final Pretrial Conference” between the US Securities and Exchange Commission (SEC) and Ripple Labs set for April 16. However, the specifics of the pre-trial proceedings were listed as “To Be Determined” (TBD). This scheduling change occurred after the SEC dropped charges against Ripple’s CEO, Brad Garlinghouse, and executive chairman, Chris Larsen.

A portion of XRP supporters remain hopeful that a resolution will be reached between Ripple and the SEC following their private meeting on April 11th, as well as the delay in Ripple’s XRP unlocks from escrow. Ashley Prosper, an industry expert, has shared her perspective that the legal battle between Ripple and the SEC may soon come to a close.

This week is significant as Ripple’s legal team works on submitting an opposition brief by April 22 and a redacted version by April 24. In response, the SEC is set to file its reply brief by May 6. Following this, the parties and involved third-parties will discuss additional concerns and are expected to make filings up until May 20.

Impact of Coinbase Interlocutory Appeal

The US Court of Appeals for the Second Circuit provided clarification for Coinbase and Ripple that selling cryptocurrencies as secondary market transactions does not equate to dealing with securities. In addition, Coinbase has submitted an appeal application in the SEC case at the Second Circuit Court of Appeals, aiming for a definition of “investment contract” beyond what is contractual.

Bill Morgan, a lawyer advocating for Ripple (XRP), stated that if Coinbase loses its ongoing SEC appeal, it could pave the way for the Securities and Exchange Commission (SEC) to challenge programmatic sales of XRP. The crux of the appeal revolves around the interpretation of an “investment contract,” and a defeat in this case could bring far-reaching consequences for related lawsuits and the crypto market as a whole.

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XRP Price Falls Below Support

XRP price currently trading below the psychological support at $0.50 and the key support level at $0.52. The price is down 4% in the past 24 hours, with a 24-hour low of $0.479. The price tumbled again amid market-wide selloff due to Iran-Israel tensions. The community expressed concerns over the lack of upside momentum in XRP, with some pointing to Ripple’s release of XRP from escrow.

Over the past few hours, there’s been a noteworthy surge in XRP purchases among derivatives traders. According to CoinGlass data, this buying spree has resulted in an uptick of over 2% in XRP futures open interest. Moreover, the total open interest for XRP futures has increased by approximately 1%. This trend is observable across all major exchanges.

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2024-04-16 11:15