Ripple (XRP), one of the longest running legal struggles in the crypto world, is approaching the end of the US Securities and Stock Exchange Commission (SEC). However, the biggest reason why the parties have not yet reached a definite compromise is that Ripple’s $ 125 million fine. As Kriptokoin.com, we transfer the details.
Ripple opposes a penalty of $ 125 million
According to Fox Business reporter Eleanor Terrett, it is only a matter of time before the agreement between Ripple and SEC. However, the Ripple side argues that the sentence of $ 125 million is not fair and negotiates for better conditions.
Initially, SEC demanded a gigantic penalty of $ 2 billion from Ripple. However, after the decision made by the judge Analisa Torres, this figure was reduced to 125 million dollars. Despite this, Ripple thinks that it should not pay such a penalty due to the absence of a clear regulatory frame in the past.
The company’s legal team wants the case to be handled from a different perspective, as SEC has recently adopted a more flexible policy against crypto currencies. In particular, the withdrawal of lawsuits filed against large crypto companies such as Coinbase, Kraken and Gemini is one of the most important factors that strengthen Ripple’s hand.
Does SEC’s crypto policy change?
In recent months, there has been a visible change in SEC’s attitude. The agency started to take a softer stance in the market by withdrawing the lawsuits filed for some major crypto companies.
Ripple argues that these facilities provided to other companies should be recognized. One of the biggest priorities of the company is the abolition of the restrictions on the sale of XRP to corporate investors. If this restriction persists, Ripple’s business model may be adversely affected and XRP’s place in the financial world may be shaken.
In particular, the fact that SEC is back from his harsh attitude towards the crypto market can create a great opportunity for Ripple. If the company can cancel the items that prevent XRP’s corporate sales in the agreement, this can help XRP gain long -term value.
Is the agreement close between Ripple and SEC?
Although the negotiations have gained momentum at the moment, the parties have not yet been able to reach an official compromise. According to legal experts, how Ripple manage the appeal process can determine the course of the agreement.
In particular, the allegations of violating the securities in the decision of Judge Torres are an important problem for Ripple. By appealing this decision, the company aims to create a more solid legal basis that rejects XRP’s securities status.
If this process results in Ripple, the legal uncertainty on XRP will disappear and a strong rise in the price may be experienced. However, if the agreement cannot be achieved, Ripple’s longer legal struggle and XRP’s price will be under pressure.
What is the effect of XRP price?
The result of this case will be a critical turn for XRP investors. If Ripple reaches a final agreement with the SEC and removes restrictions on the free movement of XRP, this can make the XRP more easily listed in large stock exchanges.
In particular, the interest of corporate investors’ interest in XRP may cause the price to rise again. However, if the dispute persists, the XRP price can follow a wavy course in the short term.
As a result, the negotiations between Ripple and SEC are of great importance not only for XRP, but for the entire crypto market. The change in SEC’s overall approach to crypto can create a more positive atmosphere in the market. However, it is critical that investors expect the final decision to be announced and follow the developments closely.
