The US Securities and Exchange Commission (SEC) has filed a status report confirming a joint motion to dismiss existing appeals in the case against Ripple Labs, the company behind XRP. This development signals the nearing end of the multi-year-long legal battle between the two parties.
Background
The SEC initially sued Ripple in December 2020, alleging it raised $1.3 billion through unregistered securities sales of XRP. However, Judge Analisa Torres ruled in July 2023 that XRP sales on public exchanges are not securities, while institutional sales were deemed securities violations.
Settlement Terms
Under the agreement:
- Penalty Payment: Ripple will pay a $50 million penalty to the US Treasury.
- Escrow Funds: $75 million in escrow funds will be returned to Ripple.
- Injunction: A permanent injunction against future institutional XRP sales remains in place.
- Legal Fees: Each side will cover its own legal costs.
Market Reaction
XRP's price surged over 10% following the news, trading at around $3.31. The price movement comes after a multi-year symmetrical triangle pattern breakout, with predictions suggesting XRP could hit $12 this cycle.
Analyst Predictions
- Short-term Target: $4, based on recent breach of $3.5 resistance level.
- Long-term Target: $12, driven by the multi-year symmetrical triangle pattern breakout.
Impact on XRP's Legitimacy
The settlement provides regulatory clarity for XRP, potentially paving the way for a spot XRP ETF. Investors' sentiments around XRP have significantly improved, with renewed ETF speculation and increasing legal clarity boosting market depth and signaling a structural step forward for $XRP 's legitimacy in US markets.ยน ยฒ
