Ripple Seeks Lower Penalty in SEC Case by Citing Terraform Labs Settlement
Ripple Labs (XRP) is leveraging the recent settlement between the SEC and Terraform Labs to argue for a lower penalty in its own ongoing
Ripple Labs (XRP) is leveraging the recent settlement between the SEC and Terraform Labs to argue for a lower penalty in its own ongoing legal battle.
Ripple’s Argument
Ripple argues that the SEC’s proposed $2 billion fine for selling XRP to institutional investors is excessive. They point to the $4.47 billion settlement imposed on Terraform Labs for its Luna and UST debacle, highlighting that no allegations of fraud existed in their case.
Ripple claims the SEC typically seeks penalties between 0.6% and 1.8% of a defendant’s gross revenue. Terraform’s settlement falls within this range, suggesting the SEC’s proposed penalty for Ripple is unreasonable. Ripple believes a $10 million penalty would be more appropriate for their case.
Background of the SEC Lawsuit
The SEC filed a lawsuit against Ripple in 2020, alleging XRP is an unregistered security. A judge partially sided with Ripple last year, determining some XRP sales weren’t securities. However, direct sales to institutional investors were deemed securities.
XRP’s Price Action
- Support Level Test: The XRP price currently sits around $0.45, a crucial support level.
- Bullish or Bearish?: Analysts debate if XRP will fall to its all-time low or experience a bullish reversal.
- Technical Indicators: The Stochastic RSI suggests a potential bullish reversal, while whale activity shows mixed signals.
- Bitcoin’s Influence: A Bitcoin price breakout above a key moving average could indicate a buying opportunity for XRP.
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