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500M XRP Unlocked Amid Remedies Ruling Odds
The Ripple SEC settlement rumors re-emerged as the blockchain firm saw a significant release of XRP tokens from escrow. A total of 500 million XRP, valued at approximately $297.74 million, was unlocked. This move led to an 8% slump in XRP’s value. Moreover, it breached the $0.6 psychological support level, as cautioned by Coingape earlier.
Lawyers Weigh In On Ripple SEC Settlement
The large unlock has fueled speculation about a possible settlement in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC has sought a substantial $1 billion (plus interest) penalty from Ripple for alleged violations. Whilst, the blockchain firm has indicated it is willing to settle for no more than $10 million.
Last week, pro-XRP attorney Bill Morgan described a potential Ripple SEC settlement as “unlikely.” However, he suggested that if it occurs, it would be a compromise rather than a significant victory. Morgan emphasized, “Settlements generally end matters in dispute including appeal rights in the current proceedings.” Nevertheless, he pointed out that Ripple might face challenges related to XRP sales beyond December 2020 and future XRP sales.
Moreover, ex-SEC lawyer Marc Fagel has reinforced his stance that the SEC’s closed-door meetings are unrelated to the ongoing lawsuit. He also predicted that the Ripple SEC settlement is unlikely as neither party will settle. Also, he foresees appeals from both sides after the ruling. Moreover, Fagel highlighted the SEC’s exorbitant penalty may not be fulfilled, indicating ease for the blockchain firm.
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Appeals After Remedies Ruling
The timing of the unlock also coincides with heightened anticipation around a ruling in the Ripple lawsuit remedies phase. Previously, the potential ruling was expected on July 31. However, legal experts now predict it may be delivered in August, possibly in the first half.
Wealth advisor Mickle and others consider the SEC’s case against Ripple to be weak, citing the firm’s previous legal victories. Despite this, the prospect of both parties appealing earlier decisions remains, complicating the resolution of the case.
Mickle also mentioned that the political climate, including a Democrat shift toward pro-crypto policies, might influence the likelihood of an appeal. He noted that the blockchain payments firm is unlikely to appeal after the remedies phase ruling. This statement comes on a backdrop of the Kamala Harris campaign attempting a crypto reset.
Conversely, Morgan argued that if legal considerations alone guide the decision, appeals from both parties remain likely. Morgan clarified, “My point is merely that if legal considerations are the only basis for a decision to appeal there is a good chance that the decision will be made to appeal.”
Furthermore, Morgan elaborated on the potential legal strategies that Ripple may adopt. He explained that the firm might appeal based on distinctions between institutional sales and sales to On-Demand Liquidity (ODL) customers, citing the fact-specific nature of the Howey test.
Morgan also explained the SEC’s logic behind the potential appeal. The lawyer noted, “It means that the SEC thinks the Judge may have made an error and there are arguable grounds of appeal as shown by the fact it sought leave for an interlocutory appeal which some seem to have forgotten.”
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Kritika Mehta
Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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