• Ripple Chief Legal Officer says that SEC seems to have abandoned its “absurd demand” of a $2 billion penalty.
  • The SEC’s latest reply to the judge suggests a fine of around $100 million, above the $10 million ceiling that Ripple considers fair.
  • XRP trades broadly steady on Monday, facing sticky resistance at $0.50. 

XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).  

Ripple’s lawyers have asked the judge to consider a civil penalty of around $10 million by drawing parallels with the recent settlement amount for Terraform Labs, another crypto firm embroiled in a legal battle with the SEC. The SEC responded to Ripple’s counter and quoted a $102.6 million figure instead, far lower than the previously requested $2 billion for allegedly violating securities laws.

Ripple’s Chief Legal Officer Stuart Alderoty said on Saturday that, by looking at the SEC’s counter letter to the judge, the regulator “seems to have abandoned its absurd demand for $2 billion.”  

Daily digest market movers: Ripple CLO responds to SEC take on $2 billion fine

  • The SEC vs. Ripple lawsuit has dragged on since 2020. The US financial regulator and the payment remittance firm are arguing on the fine to be paid for the alleged violation of securities laws, with the SEC asking for $2 billion in penalties and XRP for $10 million.
  • In the most recent reply to Ripple’s letter, the US regulator has quoted $102.6 million by comparing the recent deal struck between the SEC and Terraform Labs. Still, about this figure, the SEC also said: “That low of a penalty would not satisfy the purposes of the civil penalty statutes,” signaling that it does not seem willing to accept a similar deal. 
  • Ripple’s CLO Stuart Alderoty commented on the SEC's reply letter and noted that the regulator seems to have abandoned the “absurd demand” for $2 billion.
  • Alderoty comments on the SEC’s argument that “Ripple accepts nothing,” referring to the alleged securities violation. Ripple had drawn parallels between the SEC’s lawsuit against the firm and the one against Terraform Labs and its founders. 
  • The regulator pointed out that Terraform Labs went “out of business for good,” and several factors accounted for the fine, which was 1.27% of gross sales. According to the SEC, the same does not apply to Ripple, given the firm “accepts nothing,” meaning it does not recognize or acknowledge securities law violations.  

Technical analysis: XRP struggles to break sticky resistance at $0.50

Ripple wiped out nearly 2% of its value last week while attempting to recover from its decline on Monday. The altcoin hasn’t been able to break past resistance at $0.50, failing to close above this level nearly all days during last week. 

XRP trades at $0.4905, inching closer to testing the $0.50 resistance on the daily time frame. The XRP/USDT chart below shows red histogram bars below the neutral line on the Moving Average Convergence Divergence (MACD) indicator, supporting the recent decline in Ripple’s token. 

The MACD implies there is underlying negative momentum in Ripple’s price trend. If it corrects further, XRP could find support at the April 19 low of $0.4665. 

XRP/USDT 1-day chart 

If Ripple sees a daily candlestick close above $0.50, it could invalidate the bearish thesis. In this scenario, the next resistance is at the June 5 high of $0.5326. 

Ripple FAQs

Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.

XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.

XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.

XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.


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