The ongoing legal battle between Ripple, the company behind XRP, and the U.S. Securities and Exchange Commission (SEC) has taken a significant turn recently. Investors are closely monitoring developments as the case nears a potential resolution. It’s also important to note that its result will impact the XRP price trajectory in the 2024 bull run.
There is a critical deadline for the SEC today April 29, 2024. The regulatory body must submit its opposition brief in response to Ripple’s motion to strike out the SEC’s last-minute expert testimony. This testimony pertains to Ripple’s financial records and alleged post-complaint conduct. Striking it down could limit the scope of the case and potentially benefit Ripple.
Read Also: Ripple vs SEC Lawsuit As of March 31, 2024: Settlement Conference
Furthermore, Ripple challenged the SEC’s proposed $2 billion penalty in a separate filing. The SEC, in its March opening brief, advocated for a hefty fine encompassing three main components:
- A civil penalty of $876.3 million.
- Disgorgement of an additional $876.3 million, representing XRP sales allegedly violating securities laws.
- Prejudgment interest totaling $198.15 million.
This brings the total proposed penalty to nearly $1.95 billion. Additionally, the SEC claims that Ripple continued to violate securities laws after the December 2020 lawsuit filing. Ripple vehemently disputes this accusation, with statements from executives like Monica Long, Ripple’s president, backing their stance.
The company has moved away from XRP for ODL transactions in the U.S., showing its willingness to comply with regulation. The SEC will also find it hard to prove that Ripple has acted with reckless disregard for the law, shifting the outcome in Ripple’s favor.
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Read Also: XRP Lawsuit: SEC Focuses On $2.64 Billion Penalty from Ripple
Investor Anticipation and the Road Ahead
With the SEC’s opposition brief and Ripple’s potential reply brief due in the coming days, these filings are expected to be the final submissions before a court decision. Investors are eagerly awaiting these developments, as they could significantly impact XRP’s price and future trajectory.
While the legal battle rages on, XRP’s price reflects the ongoing uncertainty. Despite a minor gain that pushed the price above $0.52, XRP remains down 17.72% over the past month and has dipped to $0.5177. XRP’s 24-hour trading volume is also down 32.92%.
The coming weeks hold immense significance for Ripple and XRP investors. However, things are looking up for Ripple, and a legal expert believes the company will only have to pay $100 million as a penalty.
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