XRP, the cryptocurrency at the center of a legal battle between Ripple and the SEC, has seen a dip in its price amid news that the highly-anticipated settlement may have been canceled. The recent rally in XRP’s price was fueled by speculation around a closed-door SEC meeting scheduled for July 18, where many investors hoped for a resolution to the ongoing dispute.
The SEC filed a lawsuit against Ripple in 2020, alleging that the company violated federal laws by raising $1.3 billion through the sale of XRP without registering it as a security. The outcome of this case has significant implications for the SEC’s regulatory authority, especially after a judge ruled last July that sales of XRP to retail investors did not constitute investment contracts.
The latest point of contention between Ripple and the SEC revolves around the amount of fines for unregistered sales to institutional investors. While the SEC is seeking a multi-million dollar penalty against Ripple, the company believes that a civil penalty of no more than $10 million should be imposed. The cancellation of the scheduled meeting has led to a drop in XRP’s price by 8.8%, with the cryptocurrency currently trading at $0.5666.
Pro-XRP lawyer Fred Rispoli has commented on the possibility of a settlement between Ripple and the SEC before the court’s ruling, suggesting that while a pre-judgment settlement may be unlikely at this point, negotiations on unresolved issues could still take place. Judge Analisa Torres is expected to make a decision on remedies soon, with Rispoli predicting that this could happen by the end of the month.
The XRP Army and the broader crypto community are closely following the developments in the Ripple-SEC case, as the outcome could have far-reaching implications for the crypto industry as a whole. Despite the setback caused by the cancellation of the settlement meeting, investors remain hopeful that a resolution will be reached soon, putting an end to the uncertainty surrounding the future of XRP.
