SEC Might Fine Ripple for $2B: Will It Impact XRP Price?

Key Takeaways

  • Ripple Labs faces a staggering $2 billion penalty from the SEC, sparking concerns among investors and experts.
  • Ripple's leadership expresses relief over a judge's intervention in the SEC lawsuit, highlighting the excessive nature of the proposed fine.
  • The legal battle with the SEC raises uncertainty for Ripple and XRP, shaping regulatory discussions and investor sentiment in the crypto market.

Ripple Labs faces a $2 billion penalty from the SEC, which has caused a stir among investors and industry experts.

Ripple’s leadership, including CEO Brad Garlinghouse and CLO Stuart Alderoty, expressed relief in a social media post on March 25 over a judge’s decision to intervene in the SEC lawsuit against Ripple.

They argue that the SEC’s actions have been excessive, with Alderoty revealing that the SEC has proposed a staggering $2 billion fine against Ripple.

This development raises crucial questions about the future of Ripple and its digital currency, XRP, with many looking to understand the potential implications of XRP’s price prediction.

Ripple vs. SEC: Crypto Crackdown

In December 2020, the SEC sued Ripple, its CEO Garlinghouse, and co-founder Larsen, claiming they sold $1.3 billion worth of unregistered XRP tokens. However, in July 2023, Judge Torres ruled that XRP wasn’t a security when sold on crypto exchanges.

As a result, the SEC dropped charges against Garlinghouse and Larsen in October 2023. The SEC is still pursuing legal action against other crypto companies like Coinbase, Binance, and Kraken.

This legal battle highlights the ongoing argument about whether cryptocurrencies should be regulated and the SEC’s role in overseeing the industry.

Therefore, the SEC’s lawsuit against Ripple, CEO Garlinghouse, and co-founder Larsen, followed by legal developments and dropped charges, fuels uncertainty for Ripple (XRP) and the broader crypto market, shaping regulatory discussions and investor sentiment.

Ripple’s Legal Battle with SEC Heightens Uncertainty in Crypto Market

Ripple’s defense is poised to counter the SEC’s hefty $2-billion penalty proposal with vigor and precision. This follows a separate incident where a Utah judge chastised the SEC for its “bad faith.” They handled evidence in a case against Debt Box, highlighting potential systemic issues within the regulator’s operations.

Brad Garlinghouse, Ripple’s CEO, vocally criticized the SEC’s unprecedented fine request, pledging to unveil the regulator’s underlying motives in Ripple’s detailed response, which is slated for April.

A lawsuit initiated by the SEC in 2020 alleging unregistered XRP sales has led to uncertainty in the market. Ripple’s stance against the SEC’s actions reflects concerns about regulations and fairness in the cryptocurrency industry. Ripple’s dispute with the SEC affects XRP valuation and regulatory landscapes, impacting investor confidence and the future of digital currency regulation Let’s take a look at the technical side of the XRP/USD.

XRP Price Prediction

On the technical front, XRP/USD is trading at $0.634330, marking around a 2.5% decrease over the last 24 hours, with a significant trading volume of $2.1 billion.

Ranking 6th by market cap at $34.7 billion, XRP showcases a robust position in the crypto market with a current circulating supply of approximately 54.88 billion coins.

The four-hour chart highlights a pivot point at $0.63106, with key resistance levels at $0.67963, $0.70700, and $0.73164. Support is lower at $0.60367, $0.58624, and $0.56798.

XRP Price Chart
XRP Price Chart | Source: Tradingview

The RSI at 59 and the 50 EMA at $0.62799 suggest a generally bullish sentiment, supported by an ascending triangle pattern that indicates potential upward momentum.