Ripple’s lawsuit settlement against SEC speculates the reason for XRP’s 20% weekly increase

TL;DR

Ripple (XRP) rose 6% on July 12 to $0.47, despite an overall market decline. The price increase coincides with optimism about a possible resolution in Ripple’s lawsuit with the SEC. XRP is heading north

The cryptocurrency sector is in the red today (July 12), with its global market capitalization down 1.5% and currently sitting at $2.22 trillion. Major digital assets including Bitcoin (BTC) and Ethereum (ETH) are down around 2% daily, while Solana (SOL), Dogecoin (DOGE) and Shiba Inu (SHIB) have performed even worse.

However, one leading cryptocurrency has defied the negative trends and its name is Ripple (XRP). Its price rose to $0.47, which represents an increase of 6% on a 24-hour scale and 18% on a weekly basis. This is also a serious rebound from the one-year low of $0.39 recorded during the severe market correction last week.

XRP Price, Source: CoinGecko

The resurgence in XRP prices comes amid heightened expectations that the long-running lawsuit between Ripple and the US Securities and Exchange Commission (SEC) is coming to an end. The legal battle reached its trial stage in April of this year, with US Attorney Fred Rispoli recently predicting an outcome could come as soon as this month.

It also argued that the resolution would include a penalty of no more than $25 million for the company and a disgorgement of $0.

“Judge rules that all sales it found illegal are permanently enjoined and rules that all ‘new’ contracts referred to by Ripple are not properly before it, so SEC will have to sue again if he believes they violate his decision,” the lawyer added.

Another person who believes the case could officially end this summer is attorney Jeremy Hogan. It forecast a $100 million liquidation and a $0 dump.

It is worth noting, however, that the lawsuit could drag on indefinitely due to the complexity of the court process and the potential appeals of both parties. If you are curious to know more about the shoulder and its potential impact on the price of XRP, feel free to check out our dedicated video below:

Disagree about the penalty

One of the main issues surrounding the lawsuit is the size of Ripple’s potential fine. The SEC initially sought a whopping $2 billion, accusing the company of conducting an unregistered securities offering through XRP sales. Ripple did not accept the idea, insisting on a sum not exceeding 10 million dollars.

He later compared the case to the one between the watchdog and Terraform Labs, saying direct allegations of fraud were only apparent in the one against the defunct crypto firm. Soon after, the SEC softened its tone, proposing a penalty of $102.6 million:

“Ripple avoids comparing the Terraform settlement penalty to the gross profit from the infringing conduct. This ratio ($420 million / $3.587 billion) is significantly higher: 11.7%. Applying it to the 876, $3 million in gross profits, the SEC is asking the court here to disburse it, resulting in a much larger figure, a penalty of $102.6 million, than the $10 million cap it insists on Ripple.

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