SEC vs. Ripple lawsuit update: Regulator responds to letter regarding Terraform Labs judgment


  • SEC slams Ripple for citing Terraform Labs' example for lower settlement, and shares differences between two cases.
  • The regulator notes that a much larger penalty, $102.6 million is applicable to Ripple, not the $10 million. 
  • XRP price is nearly unchanged in the past seven days, the altcoin is stuck below the $0.50 resistance. 

Securities and Exchange Commission (SEC) responded to Ripple’s letter that quotes the reasons for the settlement amount being unreasonable. The payment firm had proposed a fine of $10 million, as opposed to the SEC’s $2 billion. 

XRP is ranging below the $0.50 resistance, nearly unchanged in the past seven days. 

Ripple receives response from the SEC

  • The US financial regulator addressed Ripple’s arguments on fine proposed by the SEC. 
  • The payment remittance firm proposed a $10 million settlement against SEC’s request of $2 billion in fines and settlements. 
  • The SEC responded to the request and explained the difference between the fines imposed on Terraform Labs, the circumstances and how the firm went out of business for good. 
  • In its letter the regulator highlights that two of the board members from the time of violation, stepped down, the firm shut its operations and burned the keys to digital asset wallets and took the necessary steps for the $420 million securities violation. 
  • In the case of Ripple, the SEC argues, the firm is “agreeing to nothing,” continues to operate and “fails to recognize or acknowledge its violation of securities laws.”
  • The response quotes a settlement amount of $102.6 million, against Ripple’s offer of $10 million in fines. 

XRP fails to break past $0.50

Ripple failed to close above the $0.50 barrier all week. The altcoin’s price is nearly unchanged on a seven-day timeframe on Binance. XRP ranged below sticky resistance at $0.50 and technical indicators show that the altcoin could extend its losses. 

XRP could drop to support at the April 19 low of $0.4665, marking a decline of nearly 5%.

Moving Average Convergence Divergence (MACD) indicator flashes red histogram bars under the neutral line, supporting the bearish thesis for XRP. 

XRP

XRP/USDT 1-day chart 

If Ripple sees a daily candlestick close above $0.50 it could invalidate the bearish thesis for XRP and the altcoin could surge past May 21 high of $0.55. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three reasons why Chainlink could rally

Three reasons why Chainlink could rally

Chainlink has noted accumulation by large wallet investors for the past two weeks. Nearly $110 million in LINK has been withdrawn from exchanges in this time period. LINK sustained above $13 on Sunday, extending gains by nearly 1%. 

More Chainlink News

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple rallied over 19% in the past seven days per CoinGecko data. The altcoin broke past resistance at $0.50 on the one-year anniversary of Judge Analisa Torres’ XRP ruling. 

More Ripple News

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin extended gains post the shooting at the rally of US Presidential candidate Donald Trump. The former President is a pro-crypto candidate, and a report by Fortune shows that Trump’s chances of winning the race increased after the Saturday events.

More Bitcoin News

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum (ETH) traders are watching two key events closely: the anticipated approval of the Spot Ether ETF and the activities of whales, the large wallet investors holding ETH. An analyst has predicted that the odds of Spot Ether ETF is 72.7% this week. 

More Ethereum News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. On-chain analytics indicate that whales are accumulating BTC during dips, potentially foreshadowing an imminent rally in the days ahead.

 

Read full analysis

BTC

ETH

XRP