Ripple Says $10M Penalty Enough, Rejects SEC’s Ask of $1.95B Fine in Final Judgment (2024)

FAQs

Ripple Says $10M Penalty Enough, Rejects SEC’s Ask of $1.95B Fine in Final Judgment? ›

Ripple Labs has opposed the SEC's proposal seeking a nearly $2 billion fine against the company. Ripple Labs said the Court should impose a civil penalty of no more than $10 million.

The US SEC has maintained Ripple should pay close to $2 billion in fines for selling XRP to institutional investors, in response to the fintech firm's counter-proposal that argued for a fine of around $10 million.

Experts are predicting a potential end date for the lawsuit at the district court level by July or August 2024. This means a ruling on the core issue could be issued soon. This timeframe provides some much-needed relief for investors who have been anxiously waiting for a resolution.

In the remedy-related brief filings, the SEC argued Ripple continued breaching US securities laws after the December 2020 complaint. Ripple contested that XRP sales to accredited investors and through ODL agreements did not breach US securities laws.

The SEC accused Ripple of selling XRP in an unregistered security offering. The outcome of the U.S. regulator's court case against Ripple might still have far-reaching consequences for the cryptocurrency industry. Both the SEC and Ripple emerged somewhat victorious in this court case.

The SEC has proposed a $2 billion fine on Ripple for its sales of XRP, which the SEC calls unregistered securities. A final ruling expected in the Securities and Exchange Commission's lawsuit against Ripple this spring could provide some clarity to the murky underworld of altcoins.

Whether XRP is a good investment depends mainly on an individual's financial situation, risk tolerance, and investment goals. As always, it's imperative to do thorough research and consider seeking advice from a financial advisor before diving into cryptocurrency of any kind.

If the crypto market cap hits $3 trillion and XRP retains its current 1.18% dominance, its price could ascend to $0.636 by 2025. In a more bullish scenario of the crypto market surging to $10 Trillion, the price of XRP could soar to a staggering $1.12, resulting in a potential 6x return for investors by 2030.

XRP could not be labeled as a 'Dead crypto asset' because it is still among the top 10 crypto assets with 4.6% of the total market cap.

Will the US government use XRP? ›

In Conclusion

The question, “Will the Federal Reserve use XRP?” remains open-ended – the Federal Reserve's exploration of CBDCs and the multiple recommendations for XRP reflect a growing interest in the potential of cryptocurrencies to revolutionize the financial scene.

However, if Ripple loses all appeals, the SEC is likely to collect the $1.3 billion (the amount that the regulator alleges that Ripple earned from the unregistered securities sale) and offer XRP holders an option to sell their holdings.

Unlike most cryptocurrencies, which are decentralised and therefore not run by a single entity, the cryptocurrency XRP is controlled by a company called Ripple.

It is possible for XRP to reach $1,000 USD, but it is highly unlikely in the near future.

Projections suggest the XRP supply might last up to 70,000 years due to this deflationary mechanism, though this depends on future developments. While XRP burning has a deflationary effect, it is likely to have a minimal impact on the price in the short to medium term.

XRP Price Predictions Summary

XRP price will find resistance around $0.57 and support around $0.46 in June of 2024. Throughout 2024, XRP is expected to move between $0.452 and $1.27 with an average forecasted price of $0.86.

Ripple, which has been in a legal battle with the SEC since 2020, compared the regulator's proposed $2 billion fine for selling XRP -1.70% to institutional investors to fines against Terraform Labs in a "notice of supplemental authority" filed to a New York district court on June 13.

The company compared the SEC's proposed $2 billion fine for selling XRP to institutional investors to fines against Terraform Labs. Ripple has argued its fine should be closer to $10 million. Terraform agreed to pay $4.47 billion in fines on Wednesday and later on Thursday, a judge signed off on the settlement.

The U.S. SEC has asked a New York judge to impose a fine of $1.95 billion on Ripple Labs. The SEC asked the Court to consider how easily actors, particularly in the crypto asset space, can today engage in the same sort of conduct as Ripple's.