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In this Ripple (XRP) price analysis, discover how XRP prices rose on May 6 after the United States SEC lawyers released their reply brief. Ripple supporters are bullish on Q2?
The fact that XRP is still a top 10 crypto by market cap shows that the coin has grassroots support, extending beyond the legal drama, and the team behind it is willing to go to any lengths to ensure it thrives.
Undeniably, XRP has been windy in the last three years. In December 2020, the United States Securities and Exchange Commission (SEC) decided to sue, among others, Brad Garlinghouse, the CEO of Ripple, for allegedly selling unregistered securities in XRP during their ICO.
Then, they raised over $1.3 billion.
Following this bombshell, XRP prices flash crashed to as low as $0.14 before recovering over the years to spot rates.
However, the expansion hasn’t been easy, and there have been scares along the way. In 2022, the coin tanked to as low as $0.30. Aware that Ripple was still battling the agency, skeptics expected the worst when FTX collapsed.
The Protracted Court Case: All Eyes Still Firmly On SEC
The case pitting Ripple–which is now a blockchain company distinctively separate from Ripple Labs, the issuer of XRP–and the United States SEC drags on.
The good news is that even after the partial win in July 2023, when a United States judge ruled that the programmatic sale of XRP could not be classified as a sale of securities, the case will soon come to an end.
To start off, this was the event on May 6.
Yesterday, all eyes were on the United States SEC’s brief reply, which explains why the requested $2 billion fine is justified.
Their lawyers also explain to the judge why Ripple should be permanently barred from selling XRP to clients in the United States.
The regulator wants Ripple to pay a hefty $2 billion fine. Ripple has outrightly refused, claiming this penalty is not only excessive but also unlawful.
Earlier, the blockchain company filed an opposition brief, contesting the United States SEC’s request for roughly $2 billion as a fine, which includes others, disgorgement, and a civil penalty. Ripple lawyers want to pay a maximum fine of $10 million.
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Legal experts will review yesterday’s reply from the regulator. One of them, Bill Morgan, a pro-XRP lawyer, highlighted the potential impact of a permanent injunction on Ripple’s XRP sales in a post on X. He argues that the regulator’s reply is far more important, even crucial than the penalty itself.
The argument in the passage from Ripple’s brief I extracted seems relevant to the exercise of the discretion whether to grant the injunction but we will soon see if the SEC argues it is irrelevant. I think the SEC may argue that the judge does not need to decide anything about…
— bill morgan (@Belisarius2020) May 6, 2024
While Morgan has his reasons, others are more optimistic, maintaining that even a permanent injection won’t be a complete roadblock. They continued that Ripple will have the chance to restructure its future XRP sales to comply with existing regulations in the United States.
XRP prices remain firm at spot rates. However, it is trading below $0.60 and $0.74, registered in March 2024. How the coin performs will be shaped entirely by the outcome of this case.
(XRPUSDT)
Any surge above $0.74 will easily see XRP rally to $0.90 and $1. Conversely, if the United States SEC has its way, XRP might slump to $0.40 and retest 2020 lows of $0.17.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
