SEC Seeks $1.95B Fine in Final Judgment Against Ripple (2024)

FAQs

What was the SEC response to Ripple? ›

The SEC contends that Ripple misinterprets the order and fails to accept its implications for compliance. The reply refutes Ripple's assertions about conducting sales outside the U.S. and to accredited investors, as these defenses were abandoned during summary judgment.

The SEC accused Ripple of selling XRP in an unregistered security offering. The outcome of the U.S. regulator's court case against Ripple might still have far-reaching consequences for the cryptocurrency industry. Both the SEC and Ripple emerged somewhat victorious in this court case.

In Conclusion

The question, “Will the Federal Reserve use XRP?” remains open-ended – the Federal Reserve's exploration of CBDCs and the multiple recommendations for XRP reflect a growing interest in the potential of cryptocurrencies to revolutionize the financial scene.

A California judge has ruled that a civil securities lawsuit against Ripple will proceed to trial, denying in part the crypto firm's motion for summary judgment in a suit alleging that Ripple's CEO violated state securities laws in 2017.

The company compared the SEC's proposed $2 billion fine for selling XRP to institutional investors to fines against Terraform Labs. Ripple has argued its fine should be closer to $10 million. Terraform agreed to pay $4.47 billion in fines on Wednesday and later on Thursday, a judge signed off on the settlement.

The SEC sued Ripple, its CEO Brad Garlinghouse and co-founder Chris Larsen in 2020, accusing them of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.

It is possible for XRP to reach $1,000 USD, but it is highly unlikely in the near future.

If the crypto market cap hits $3 trillion and XRP retains its current 1.18% dominance, its price could ascend to $0.636 by 2025. In a more bullish scenario of the crypto market surging to $10 Trillion, the price of XRP could soar to a staggering $1.12, resulting in a potential 6x return for investors by 2030.

However, if Ripple loses all appeals, the SEC is likely to collect the $1.3 billion (the amount that the regulator alleges that Ripple earned from the unregistered securities sale) and offer XRP holders an option to sell their holdings.

This poses a liquidity problem as banks would need to hold these cash reserves for the system to work. If a complete switch to XRP were to occur, then yes these reserves would be converted into XRP and the author's assumptions would work out. The price of 1 XRP would equal over $1,530.

Is it illegal to own XRP in the United States? ›

Yes, you can buy XRP legally on any of the regulated exchanges in the U.S.

In most cases, XRP is used as a bridge currency for on-demand liquidity outside the U.S. A bridge currency gives businesses a common currency to use in international and cross-border financial transactions, similar to the way the U.S. dollar has been used.

Experts are predicting a potential end date for the lawsuit at the district court level by July or August 2024.

XRP remains priced below $0.5, leading to negative perceptions and labels of it as a “dead coin.” Following a court decision in July 2023, which determined XRP was not a security, its price briefly peaked at $0.93.

XRP price will find resistance around $0.57 and support around $0.46 in June of 2024. Throughout 2024, XRP is expected to move between $0.452 and $1.27 with an average forecasted price of $0.86.

The US Securities and Exchange Commission (SEC) has reduced its proposed settlement amount for Ripple from $2 billion to $102.6 million, according to a legal document dated June 14, 2024, shared by defense lawyer James Filan.

According to our current XRP price prediction, the price of XRP is predicted to rise by 20.53% and reach $ 0.584478 by July 20, 2024. Per our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 63 (Greed).

The AXRP Exchange Traded Product (ETP) is provided by 21Shares. It is built to track an index: CoinMarketCap Ripple XRP Price Index.