Ripple Vs. SEC Update! Important Developments To Check Out

The ongoing legal battle between Ripple and the SEC continues to provide updates without resolution. 

Recently, the SEC saw the departure of David Hirsh, the chief of the Crypto Asset and Cyber Unit in the Division of Enforcement, who resigned after nearly a decade with the agency. 

According to speculations, Hirsh will join pump.fun, a Solana-based marketplace for creating and distributing tokens. However, Hirsh denied the rumors. 

The resignation is crucial as the lawsuit has already entered its trial phase. Both parties have submitted the required data and complied with court rules in recent months. According to some industry experts, they are now waiting for the judge’s ruling. American lawyer Jeremy Hogan is among those who hold this view. 

As of this moment, Ripple’s potential fine has become a major point of contention between the two parties. Initially, the SEC sought a substantial $2 billion fine against the company, accusing it of conducting an unregistered securities offering by selling its XRP token.

Ripple strongly opposed this amount, arguing that the penalty should not exceed $10 million. They referenced the SEC’s case against Terraform Labs, noting that the now-defunct crypto firm agreed to a $420,000 civil penalty for its fraudulent actions. Ripple also emphasized that there are no direct allegations of fraud in its case with the SEC.

Subsequently, the SEC lowered its proposed fine to $102.6 million.

Meanwhile, XRP is currently trading at $0.4955, suggesting a potential rally on the horizon. Experts predict that the consolidation phase will soon end, anticipating a brief upswing that could raise the price of XRP to at least $0.60.

This expected movement is based on the analysis of market trends and the historical performance of similar assets. Typically, a consolidation period is followed by a short-term increase in value. 

Despite the ongoing consolidation, investor sentiment towards XRP remains cautiously optimistic. The short-term outlook for cryptocurrencies is heavily influenced by market dynamics, including trading volumes and institutional interest.