Ripple (XRP) Price Surge Anticipated as SEC Lowers Proposed Settlement Offer to $102.6M

The ongoing legal battle between Ripple Labs, the company behind the XRP Ledger blockchain, and the U.S. Securities and Exchange Commission (SEC) appears to be nearing a conclusion, with the possibility of a significant price surge for XRP on the horizon.

The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) over the sale of XRP appears to be nearing a conclusion, with the potential for a significant price surge on the horizon.

In the latest development, the SEC has lowered its proposed settlement offer from a hefty $2 billion to a more manageable $102.6 million, which could be a turning point in the case that has loomed large over the cryptocurrency industry.

The saga began in December 2020, when the SEC accused Ripple of selling XRP, the native token of the XRP Ledger, as an unregistered security, leading to a demand from the SEC for $2 billion, including disgorgement, prejudgment interest, and civil penalties.

Ripple contested this figure sharply, arguing for a settlement closer to $10 million, with their legal team claiming that the SEC’s initial proposal was “grossly excessive,” especially considering the recent settlement between the SEC and Terraform Labs, the company behind the Luna cryptocurrency.

In that case, the SEC agreed to a penalty range between 0.6% and 1.8% of Terraform Labs’ revenue, considering the company’s bankruptcy and its commitment to substantial corrective actions.

The SEC, however, maintained that the Terraform Labs case was not an appropriate comparison, as Terraform Labs agreed to burn its remaining Luna tokens and remove its founders from leadership positions – actions that Ripple has not offered to take.

The SEC argues that the reduced $102.6 million settlement offer is still necessary to deter future misconduct in the cryptocurrency market.

The legal battle has had a tangible impact on the price of XRP. Despite ongoing partnerships, a growing user base, and the development of a robust ecosystem of applications on the XRP Ledger, XRP currently ranks as the seventh largest cryptocurrency by market capitalization (around $27.7 billion), and its price has remained largely stagnant at roughly $0.49.

Industry observers, such as Ripple’s former director Sean McBride, believe that a significant price increase for XRP is likely once the SEC lawsuit is finally resolved, with some analysts even projecting a potential price surge to $5 per XRP.

Key Developments in the Case

The legal wrangling has also seen some key developments. On June 14, 2024, Judge Analisa Torres delivered a landmark decision, ruling that Ripple violated securities laws by selling XRP to certain institutional buyers.

However, she dismissed the SEC’s broader claims that XRP sales on exchanges and through algorithms also constituted unregistered securities offerings.

This decision was seen as a partial victory for Ripple and the crypto industry, as it provided greater clarity regarding the regulatory landscape for digital assets.

While a final ruling on the SEC’s revised settlement offer is still pending, Ripple CEO Brad Garlinghouse has reportedly indicated a potential resolution by September 21, 2024.

This timeline, coupled with the reduced settlement offer, has injected a sense of optimism into the XRP community, as a definitive conclusion to the lawsuit could pave the way for the long-awaited price breakout for XRP, potentially propelling it towards the price points predicted by analysts.

However, the final decision from Judge Torres will ultimately determine the fate of XRP and its role within the broader cryptocurrency ecosystem.

News source：https://www.kdj.com/cryptocurrencies-news/articles/ripple-xrp-price-surge-anticipated-lowers-proposed-settlement-offer-m.html

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