Ripple counters $2 billion SEC fine: public backlash swings favor away from SEC

Is public sentiment shifting against the SEC as Ripple contests their $2 billion request, with the crypto community growing increasingly frustrated playing a role in this changing tide?

In the current court dispute between Ripple (XRP) and the US Securities and Exchange Commission (SEC), the SEC is seeking a significant penalty of approximately $2 billion from the blockchain firm.

The list contains three types of damages: $876 million for compensation, an additional $198 million as interest on that amount, and a further $876 million as civil penalties.

proposing a fine of up to $10 million as a civil penalty.

Stuart Alderoty, Ripple’s legal head, explained in a statement regarding X that the company maintains its stance without any accusations or proven instances of carelessness or deceit.

The SEC’s proposal for imposing a penalty of $2B on Ripple over legacy institutional sales has become public. This comes from a case where no wrongdoing or misconduct (neither alleged nor proven) such as recklessness or fraud was found. In this instance, Ripple emerged victorious on several key points. However, the SEC’s demand seems to be an indication of its persistent pursuit.

— Stuart Alderoty (@s_alderoty) April 23, 2024

The SEC’s request was proposed by him as part of a more extensive effort aimed at intimidating the crypto sector in the United States.

Brad Garlinghouse, CEO of Ripple, expressed similar concerns, cautioning about the potential consequences of the Securities and Exchange Commission’s actions and regulations in the future.

It’s fitting that we submit our reply on the very same day that two SEC lawyers have stepped down due to their actions in the Debt Box case…

After Gensler leaves, the US will be left to deal with the aftermath of the agency’s unfortunate policies.

— Brad Garlinghouse (@bgarlinghouse) April 23, 2024

During the ongoing lawsuits, Ripple argues in its submission that it has adjusted its operations. Specifically, it has modified how it sells its XRP tokens to align with court orders and comply with regulations not only in the US but also globally.

Ripple acknowledges making significant attempts to resolve issues brought up by the court and regulatory bodies, demonstrating a readiness to collaborate while adhering to legal restrictions.

How did the public react?

Amidst the continuing court case, people on social media have shared diverse views, voicing worries and annoyance towards the Securities and Exchange Commission.

A user of X brought up an analogy, likening the SEC’s actions in the situation to that of a lawyer being criticized by a judge.

Picture yourself as a lawyer, and the judge passes a ruling stating that your commitment to the law seems questionable. Translated, this means that your actions and behavior raise doubts about your loyalty to legal principles. To put it simply, the judge implies that you’re not taking your professional responsibilities seriously enough. Despite this criticism, you remain undeterred and carry on with your approach.

— Anders 🏁🌏 (@X__Anderson) April 23, 2024

It’s intriguing how an organization responsible for enforcing laws can find itself under scrutiny for potentially deviating from its original mission.

A different user has brought up concerns regarding responsibility and connected the SEC’s moves to extortion, raising queries about who oversees those conducting the investigations.

They’re perpetrating extortion in broad daylight, who investigates the investigaters?

— Gandolf the Grey (@JasonDi28183724) April 23, 2024

Simultaneously, a user voiced their displeasure with SEC Chair Gary Gensler’s methods, arguing that his actions negatively affect the US crypto sector.

Absolute facts. Gary has destroyed crypto in the US for sure. When he decided to go-to war instead of helping the industry.

— JeFoo (@cryptojefoo) April 23, 2024

Certain users shared their viewpoint regarding the suggested fine, suggesting that paying $10 million as a settlement could be reasonable, and encouraging the SEC to bring the issue to a quick close.

Certainly, This is a done deal, isn’t it? I believe $10 million is a reasonable amount. The SEC would be wise to come to an agreement and move forward. Things are not looking good for the SEC or Gensler, and this situation isn’t improving.

— Sean McBride (@seanmcbride16) April 23, 2024

In simple terms, the consensus among various views is that the Securities and Exchange Commission (SEC) faces a lack of public approval, while Ripple Labs has successfully gained public favor through the courts.

XRP price analysis 

Following the significant drop in cryptocurrency market values on April 11, resulting in XRP reaching a low of $0.42, there have been indications of improvement. As of April 24, XRP is being traded at $0.55 on the markets, representing a 30% increase from its previous price.

Ripple counters $2 billion SEC fine: public backlash swings favor away from SEC

Over the past year, this stage has functioned as a robust line of defense. It has faced two significant challenges, most notably in October 2023 and February 2024.

Although there’s been an uptick in activity, XRP‘s weekly trading volume has dropped by nearly a billion dollars, suggesting a possible price drop back to around $0.50.

In simpler terms, the price of XRP might encounter hurdles around $0.57 and $0.58 because that’s where key moving averages lie.

If bulls manage to move past the supply area, the upward trend for XRP may continue. Overcoming this hurdle might push XRP’s price up to around $0.60. Should this level be breached successfully, the cryptocurrency could aim for the significant resistance of $0.70, representing a potential 28% rise in value.

Instead, keep in mind the importance of tracking significant resistance points, such as $0.52 and the psychologically relevant level at $0.50. In pessimistic circumstances, XRP could potentially find buying interest near its previous low of $0.42.

Whales on the move

Over the last several months, despite price instability, XRP has stayed within the price band of $0.45 to $0.70. This stability has drawn investors who view this price range as an attractive chance to purchase.

According to data from Santiment’s market intelligence, there has been a significant rise in the number of XRP wallets containing one million tokens or more. Over the past six weeks, this figure has grown to approximately 2,013, which is close to the all-time high hit in June 2023.

🐳 The price of #XRP has jumped ahead of the #altcoin pack, jumping +6% and as high as $0.5687 today. The amount of wallets, 2,013, holding at least 1M $XRP has been surging over the past six weeks (rising 3.1%), and is within 1 wallet of the #AllTimeHigh. — Santiment (@santimentfeed) April 22, 2024

In the past, when XRP amassed a comparable amount, its price experienced a notable increase, exceeding $0.80, after securing a partial win in court against the SEC.

Looking ahead

In the closing stages of the courtroom fight between Ripple and the Securities and Exchange Commission, there’s a possibility that XRP may experience a surge in buying interest.

If things go well for Ripple, the token’s value might increase. On the other hand, an unfavorable decision could cause a drop in price and potentially result in more stringent regulations.

The Bitcoin (BTC) halving that took place last week brings an extra level of intricacy to the current state of affairs.

Previously, Bitcoin undergoing a halving has led to significant price increases for BTC and heightened market action. This historical trend might potentially benefit XRP‘s price in the near future.

Considering these elements, keep a close eye on the progress of the Ripple-SEC lawsuit and market fluctuations to identify suitable chances for trading XRP.

Read More

Sorry. No data so far.

2024-04-24 13:04