Today’s meeting of Ripple vs. SEC behind closed doors is crucial, and the prospect of a settlement looms large, capturing the attention of both the crypto community and investors. Recent developments, including closed-door discussions and legal filings, suggest ongoing negotiations between the two parties. However, the outcome remains uncertain, with the upcoming pre-trial conference Today adding to the anticipation.
SEC Closed-Door Meeting’s Not New
Closed-door SEC meetings are routine and involve high-level officials such as commissioners and key staff. These discussions, which may be virtual or held in Washington, D.C., are not accessible to the public. Since today is the crucial meeting, anything is possible, and crypto is buzzing with rumors of settlement.
In the SEC v. Ripple case, Ripple won on some points but violated securities laws with its XRP sales. Now, the focus is on deciding penalties. The SEC wants Ripple to pay nearly $2 billion. To pay this hefty fine, Ripple would either pay the fine in XRP (a massive sell-off followed by a price crash) or sell the whole company to cover the fine. The next steps include Ripple’s response on April 22 and the SEC’s reply on May 6, leading to the court’s final decision if they don’t settle today.
Coinbase’s Interlocutory Appeal Is Another Mess
Bill Morgan stated that Coinbase’s move to pursue an interlocutory appeal in the Second Circuit Court of Appeals has made the situation more complex for Ripple. This appeal aims to clarify the definition of an “investment contract,” which is crucial and could greatly affect the crypto industry. The result of this appeal could set important legal precedents and affect ongoing lawsuits, like the Ripple vs. SEC case.
XRP Mudling in Ripple vs SEC Case
What follows is the XRP price facing downward pressure, falling below key support levels amidst heightened market volatility. Investors and analysts attribute this decline to a combination of factors, including concerns over Ripple’s periodic release of XRP tokens from escrow and the lingering uncertainty surrounding the outcome of the lawsuit. These factors have contributed to a lack of positive momentum in XRP’s value, prompting cautious sentiment among investors.
Despite the downturn, derivatives traders are growing interested in XRP futures. The rise in futures open interest on major exchanges shows that some traders are preparing for XRP price changes. Overall, the expansion of active XRPL liquidity pools is a positive sign for the XRP community, indicating ongoing interest and involvement in the network despite uncertainties.