Ripple, in response to a $2 billion fine from the SEC, has put forward a settlement proposal of $10 million, showcasing its confidence and resilience. This move has the potential to drive the price of XRP to $1 as it gains momentum amidst regulatory developments.
Taking a strong stand against the SEC, Ripple has refused to accept the substantial fine and instead offered a settlement of $10 million. The San Francisco-based company supports its proposal by highlighting its institutional sales revenue prior to the complaint and comparing its suggested penalty to those imposed in similar cases within the digital asset industry.
In a tweet, Marcel Knobloch, also known as Collin Brown, described this development as a crucial moment in Ripple’s ongoing legal battle with the SEC. Despite facing charges of selling XRP as an unregistered security, Ripple remains steadfast in its determination to overcome regulatory obstacles while maintaining its position in the market.
Ripple argues that the proposed amount is proportionate to its pre-complaint institutional sales revenue, making it a reasonable alternative to the SEC’s hefty penalty demand. The company emphasizes that this proposed penalty aligns with penalties imposed in other cases involving digital assets where no serious misconduct was found.
The legal dispute between Ripple and the SEC dates back to a lawsuit filed in 2020, alleging that Ripple offered XRP as an unregistered security. However, a subsequent judicial decision clarified that Ripple’s sales on the open market did not constitute securities offerings, while direct sales to institutional investors did.
In addition to contesting the SEC’s lawsuit, Ripple is preparing for a potential legal battle. The positive outlook surrounding this legal conflict has contributed to a surge in XRP’s price, breaking through significant resistance levels. Despite the broader cryptocurrency market observing outflows of over $200 million for two consecutive weeks, XRP has attracted $1.3 million in inflows, indicating a deviation from the overall trend.
These legal and market developments highlight Ripple’s strategic approach to navigating regulatory challenges and have the potential to drive a significant price rally for XRP. It is speculated that XRP’s price could soon reach $0.7, setting the stage for a further rise to $1 in the near future. Currently, XRP is trading at $0.536, representing a 7.53% increase over the past week.
In conclusion, Ripple’s refusal of the SEC’s $2 billion fine and its $10 million settlement proposal demonstrate the company’s confidence and determination to overcome regulatory hurdles. These developments have the potential to drive XRP’s price to $1, as it gains traction amidst regulatory news.