Ripple receives $75 million settlement from SEC, XRP turns green
Ripple has agreed to pay $50 million of the $125 million penalty originally proposed in a settlement with the SEC. The company will receive the remaining $75 million.
Quick overview
- Ripple has settled with the SEC, agreeing to pay $50 million of a proposed $125 million penalty, while receiving $75 million back.
- XRP has broken above the $2.25 resistance line, indicating bullish market sentiment despite its overall poor performance this year.
- The resolution of the lawsuit may enhance Ripple's growth prospects and clarify XRP's regulatory status as a commodity, potentially aiding in ETF approval.
- Whales have accumulated $2 billion worth of XRP recently, although significant selling by major holders raises concerns about market stability.
Live XRP/USD Chart
Ripple has agreed to pay $50 million of the $125 million penalty originally proposed in a settlement with the SEC. The company will receive the remaining $75 million.
Market action showed XRP broke above the $2.25 resistance line during Friday’s trading session amid a bullish crypto market
This officially closes one of the longest-running legal battles in the cryptocurrency industry. The case has been closely monitored throughout the digital asset sector since it was filed during Gary Gensler’s tenure at the SEC. Ripple appears well-positioned for faster growth, having remained financially stable throughout the court case.
Ripple paid a record $1.22 billion to acquire the prestigious brokerage firm Hidden Road. The company was also negotiating a potential $5 billion acquisition with Circle, the USDC issuer, but that offer was reportedly declined.
Ripple will likely intensify its domestic and international acquisition strategy with the lawsuit now resolved and a significant portion of the penalty returned. The court ruling may also impact XRP’s regulatory status, strengthening the argument that XRP is a commodity rather than a security. This clarification could facilitate the approval of an XRP ETF.
Glassnode data indicated that whales have interpreted XRP’s April recovery and early May downtrend as a signal to buy. In total, whales have amassed $2 billion worth of XRP over the previous 30 days, prompting some traders to wonder if some purchases were insider trading.
The altcoin has performed poorly this year. Year-to-date is only 1% higher but 35% lower than its January highs.
Similarly, the token’s inability to sustain its upward momentum in late April and its two rejections of the $2.29 level within a week make it hard to believe that the overall trend will change based on recent market activity. At the very least, the accumulation shows confidence that the token can remain stable before rising again.
Whales offloaded 370 million XRP during the first two weeks of April, making the significant selling by major holders particularly noteworthy.
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