The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues to intensify, raising concerns about Ripple’s future and the price of XRP, its native cryptocurrency.
SEC Rejects Ripple’s Settlement Comparisons
The SEC recently challenged Ripple’s arguments regarding settlements in similar cases. Ripple cited settlements as a benchmark for potential penalties, but the SEC countered that these settlements involved financially distressed companies like Terraform Labs, which went bankrupt and replaced key personnel.
Sherrie, an XRP proponent, acknowledges the SEC’s point, stating, “There’s a significant difference” between Ripple and Terraform Labs. The SEC further emphasized that Ripple has refused to settle the case, seeking a much lower penalty than the $1.3 billion the SEC is requesting.
Potential for Injunction Could Impact XRP Business
Former SEC lawyers, James Farrell and Marc Fagel, believe the ongoing lawsuit could have broader implications for Ripple. They suggest that Judge Torres may need to rule on an injunction that could significantly impact Ripple’s On-Demand Liquidity (ODL) business, which utilizes XRP.
Farrell highlights the potential for a balanced approach where the court defines the legal boundaries for XRP sales while allowing Ripple’s legitimate ODL business to operate. This would provide clarity for both parties.
XRP Price Faces Downward Pressure
The ongoing legal battle and bearish sentiment in the broader crypto market are putting downward pressure on XRP. The price is currently trading near a key support level, well below key moving averages, indicating a downtrend. Analysts warn that if Bitcoin price weakness continues, XRP could fall further, potentially reaching $0.42.
Uncertain Future for Ripple and XRP
The outcome of the SEC lawsuit remains uncertain. A prolonged legal battle could further dampen investor confidence and negatively impact XRP price. While a swift resolution might offer some relief, the potential for an injunction adds another layer of complexity. With the price hovering near crucial support levels, XRP investors are watching the legal battle closely for any signs of a resolution.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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