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Settlement Debates & XRP Price Fall Concerns

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Recent events related to Ripple and the U.S. SEC led to many theories on settlement in the SEC v. Ripple Labs lawsuit, especially after a March 29 court filing showed a settlement conference happened between the parties.

Before the settlement conference, the SEC asked the court for a final judgment against Ripple and nearly $2 billion in penalties for violations of Section 5 of the Securities Act of 1933 and conducting unregistered offerings of XRP in institutional sales. Ripple executives Brad Garlinghouse and Stuart Alderoty condemned the SEC and claimed to expose the regulator.

Ripple Vs SEC Pre-Trial Conference

Debate on settlement in Ripple vs SEC started as the SDNY Court’s proceeding calendar for the week of April 15 displays a “Final Pretrial Conference” between the U.S. SEC and Ripple Labs on April 16. However, the courtroom detail shows as “TBD.” The matters for pre-trial were dismissed when the SEC dropped charges against CEO Brad Garlinghouse and executive chairman Chris Larsen.

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Some XRP army members still believe a settlement is in play after the SEC’s recent closed-door meeting on April 11, Ripple’s delayed XRP unlocks from escrow, and reasons by expert Ashley Prosper on the Ripple vs SEC case probably over.

However, it’s an important week as Ripple defense team prepares to file an opposition brief by April 22 and a redacted version by April 24. Further, the SEC is scheduled to file its reply brief by May 6. The parties and third-parties will then confer on other possible issues, with filings expected until May 20.

Impact of Coinbase Interlocutory Appeal

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Coinbase and Ripple gained clarity from the US Court of Appeals for the Second Circuit that secondary market transactions of cryptocurrency are not securities. Moreover, Coinbase has filed for interlocutory appeal in the SEC case in the Second Circuit Court of Appeals seeking clarity on whether an “investment contract” requires something contractual.

Pro-XRP lawyer Bill Morgan said Coinbase’s potential loss in the SEC appeal could open doors for the SEC to appeal against programmatic sales of XRP. As the appeal centers on a crucial question regarding the definition of an “investment contract”, a loss in appeal have significant implications for the lawsuits and the crypto market.

Also Read: Terra Luna Classic (LUNC) Core Team Proposal Fails, Here’s Why

XRP Price Falls Below Support

XRP price currently trading below the psychological support at $0.50 and the key support level at $0.52. The price is down 4% in the past 24 hours, with a 24-hour low of $0.479. The price tumbled again amid market-wide selloff due to Iran-Israel tensions. The community expressed concerns over the lack of upside momentum in XRP, with some pointing to Ripple’s release of XRP from escrow.

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Derivatives traders are buying XRP with more than 2% increase in XRP futures open interest in the last few hours, as per data by CoinGlass. In the last few hours, total XRP futures OI has also rose by 1%. The buying is witnessed across all major exchanges.

Also Read: Ripple CTO Slams Elon Musk For Plans Of Imposing Charges On New X Users

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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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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