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Ripple Faces Massive $2 Billion Fine Demand from SEC

Ripple, SEC

Key Insights: 

  • The SEC’s request for a $2 billion fine marks a significant escalation in the legal battle between Ripple and the regulatory body.
  • Ripple’s Chief Legal Officer criticizes the SEC’s approach, accusing it of pursuing punitive measures rather than applying the law faithfully.
  • XRP’s recent surge, propelled by increased open interest and trading volume, reflects growing optimism despite pending legal uncertainties.

SEC Seeks $2 Billion Fines from Ripple Labs: Legal Battle Intensifies

The US Securities and Exchange Commission is aggressively pursuing $2 billion in fines from Ripple Labs, as revealed by the fintech company’s Chief Legal Officer, Stuart Alderoty. This staggering demand, set to be disclosed in the SEC’s forthcoming brief, underscores the intensity of the ongoing legal saga between Ripple and the regulatory body.

Alderoty disclosed on March 25 that the US Securities and Exchange Commission is poised to request this unprecedented sum in penalties from U.S. District Judge Analisa Torres in Manhattan. He emphasized the punitive nature of the SEC’s approach, asserting, “Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple and the industry at large.”

The US Securities and Exchange Commission initiated legal action against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in 2020, alleging the illegal solicitation of approximately $1.3 billion through an unregistered securities offering of its native token, XRP.

Garlinghouse criticized the SEC’s conduct under Chair Gary Gensler, stating, “Gensler’s SEC has repeatedly acted outside the law.” He highlighted judicial rebukes of the agency’s overreach, including accusations of a “gross abuse of power” and a failure to uphold “faithful allegiance to the law.”

Despite setbacks, Ripple secured a partial victory when Judge Torres ruled that XRP sales on public cryptocurrency exchanges did not meet the legal definition of security. Moreover, she rejected the SEC’s request for a repeal while the case was ongoing.

Amidst the legal wrangling, observers have pointed out the absence of fraud allegations in the SEC’s case against Ripple, raising questions about the disproportionate penalties sought by the regulator. John E. Deaton’s ‘CryptoLaw’ channel lamented the lack of restitution for retail investors, highlighting losses amounting to $15 billion attributed to the SEC’s regulatory actions.

XRP Price Analysis

A notable resurgence grips the market as Bitcoin escalates above $71,000 while Ethereum surges past $3,600. Alongside these major players, other prominent altcoins like Solana, XRP, and Polkadot mark significant gains.

Cryptocurrency HeatMap: Coin360

XRP has experienced a substantial 2.81% surge over the last 24 hours, now trading at $0.6482 and even crossing the $0.65 threshold. This surge is complemented by a 2% market cap increase and a staggering 65% surge in 24-hour trading volume, portraying a bullish stance for the Ripple-backed token.

Ripple Chart

XRP/USD price chart: CoinMarket Cap

Derivatives data from Coinglass reveals a remarkable 10% uptick in XRP’s open interest, coupled with a striking 88% surge in derivatives volume. These metrics underscore heightened bullish sentiment, indicating a potential uptrend for XRP.

This collective momentum paints a bullish picture for XRP today, reflecting optimism for future gains. However, the market is on watch following the 2 Billion fine recently imposed on Ripple, which could hold significant sway over XRP’s price trajectory.

XRP Technical Analysis

From a bullish perspective, XRP could surge toward the $0.70 mark. However, caution is advised as market sentiments can swiftly change, impacting XRP’s price trajectory.

Should sentiment shift, XRP could face downward pressure, challenging the anticipated price increase. Bulls aiming to drive prices beyond $0.67 might encounter resistance near $0.74, a level where bearish forces are expected to intensify their stance. Conversely, a breach below the current uptrend line would empower bears, potentially leading to a downward spiral towards $0.50.

Analyzing technical indicators, the Relative Strength Index (RSI) suggests a neutral stance, indicating a favorable balance between buyers and sellers influencing price movements. Moreover, XRP’s price has remained near the 20-day Exponential Moving Average (EMA) of $0.62, reflecting ongoing dynamics between market participants.

XRP/USD chart: TradingView

Additionally, the Commodity Channel Index (CCI) indicates a low likelihood of significant downturns, as it remains above zero, signaling a continued upward trend in XRP’s price action.


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