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.
#XRPCommunity #SECGov v. #Ripple #XRP @SECGov has responded to @Ripple’s letter regarding the TerraForm Labs Consent Judgment. pic.twitter.com/VvGSJffwa8
— James K. Filan (@FilanLaw) June 14, 2024
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/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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
