Ripple has chosen to take a bold and defiant stance against the SEC by rejecting a hefty $2 billion fine and proposing a much smaller settlement of $10 million. The San Francisco-based company is justifying its proposed settlement by pointing to its pre-complaint revenue from institutional sales and comparing its suggested penalty to those imposed in similar cases within the digital asset sector.
This move by Ripple is seen as a pivotal moment in its ongoing legal battle with the SEC, which began with allegations of selling XRP as an unregistered security. By standing firm against the SEC’s penalty demand, Ripple is demonstrating its determination to overcome regulatory obstacles while maintaining its position in the market.
Ripple’s legal arguments and strategic defense are based on the belief that the appropriate civil penalty should not exceed $10 million. The company argues that this amount is in line with its institutional sales revenues and is consistent with penalties imposed in similar cases where no serious misconduct occurred.
The dispute between Ripple and the SEC dates back to a 2020 lawsuit, in which the SEC claimed that Ripple had offered XRP as an unregistered security. However, a subsequent court ruling clarified that Ripple’s open-market sales were not considered securities offerings, although direct sales to institutional investors were.
In addition to its legal battle, Ripple is also preparing to contest the SEC’s lawsuit, which could have a significant impact on the price of XRP. The optimism surrounding this legal dispute has already led to a surge in XRP’s price, breaking through key resistance levels. While the broader crypto market has seen outflows of over $200 million for two consecutive weeks, XRP has attracted $1.3 million in inflows.
These legal and market developments suggest that XRP’s price could soon rally to $0.7, with the potential for further gains up to $1 in the near future. Currently, XRP is trading at $0.536, representing a 7.53% increase over the past week.
Overall, Ripple’s refusal to accept the SEC’s hefty fine and its strategic defense against the lawsuit are positioning the company for potential success in overcoming regulatory challenges. This, in turn, could lead to a significant price rally for XRP in the coming weeks.