- With a deadline of April 22, Ripple must respond to the SEC’s severe sanctions as well as the potential sales prohibition to institutional investors.
- Despite legal uncertainty, XRP’s price is $0.6007 with a $33.62 billion market value, making it the 6th largest cryptocurrency.
Ripple Labs is still in a major legal dispute with the SEC, which has been dragging on. The ending of this case will certainly affect Ripple and the cryptocurrency market, especially the classification and regulations surrounding digital assets, aka crypto.
Legal Battle: SEC vs. RippleÂ
On March 26, the SEC edited its March 22 remedy-related opening brief, intensifying its Ripple investigation. The SEC claims Ripple violated U.S. securities laws after the December 2020 complaint. The SEC wants harsh penalties and a court order to stop Ripple’s institutional XRP sales.
Ripple must file its opposing brief by April 22 to address these charges. This brief must address the SEC’s worries about Ripple’s post-complaint activities, which ETHNews previously reported could materially impact the case.
Ripple may use Morrison vs. NAB to argue that the SEC only has authority over U.S. sales. The severity of potential penalties may be reduced if Ripple can show that its post-complaint XRP sales took place outside the U.S.
The case has major financial ramifications. In its opening brief, the SEC referenced $729 million from pre-complaint revenues, indicating Ripple’s potential penalties. The court’s decision may solely consider U.S. sales, thereby decreasing the punishment.
Prior to now, the SEC’s strict stance on Ripple cast doubt on the speedy certification of an XRP ETF, but Uphold’s recent actions point to a promising future for Ripple ETPs, as ETHNews previously reported. However, there has been no official statement regarding this.
Market and Investor Reaction
The legal issues surrounding Ripple have hurt XRP’s market performance. XRP has overcome these obstacles. As of this post, XRP’s price is $0.6007, marking 1.90% in 24 hours. This increase has raised its market cap to $33.62 billion, making it the 6th largest crypto asset.
Technical Analysis: XRP Closer
XRP’s market position shows complex technical signs. Despite being below the 50-day Exponential Moving Average (EMA), the cryptocurrency is above the 200-day EMA, indicating a more hopeful long-term prognosis.
A breakout above the 50-day EMA might send XRP above $0.6609 resistance, signifying a potential shift in investor confidence.
A drop below the 200-day EMA and $0.5740 support level could intensify the negative trend. The 14-day Relative Strength Index (RSI) level of 45.78 suggests XRP may be oversold, affecting market dynamics.