XRP News Today: Ripple Eyes Settlement as SEC Closed Meeting Looms

XRP Ends Six-Day Losing Streak

On Tuesday, August 6, XRP advanced by 3.55%. Partially reversing a 6.44% tumble from Monday, August 5, XRP closed at $0.5071. Significantly, XRP ended a six-day losing streak. The broader crypto market rose by 3.83% to a market cap of $1.940 trillion.

Dip buyers returned on Tuesday spurred by a pickup in market risk appetite following Monday’s Yen carry trade unwind-fueled sell-off.

SEC Closed Meeting in Focus

Investors will return their focus to the looming SEC Closed Meeting on Wednesday, August 7. The SEC will hold the meeting on Thursday, August 8.

According to the Sunshine Act Notice, the agenda items include:

• Institution and settlement of injunction actions;
• Institution and settlement of administrative proceedings;
• Resolution of litigation claims; and
• Other matters relating to examinations and enforcement proceedings.

Settlement-related agenda items have sparked speculation about a possible SEC vs. Ripple settlement.

Notably, Ripple CEO Brad Garlinghouse and Chief Legal Officer, Stuart Alderoty, have remained silent on X (formerly Twitter) since reacting to SEC vs. Binance updates in July. The lack of communication could suggest progress in discussions with the SEC to settle the case.

SEC vs. Ripple: Penalties and Injunctions

Settlement discussions likely involve the penalty Ripple must pay for violating US securities laws. In July 2023, Judge Analisa Torres ruled that Ripple breached US securities laws by selling unregistered XRP to institutional investors.

In March 2024, the SEC filed its remedies-related opening brief, pursuing a $2 billion penalty and an injunction prohibiting Ripple from selling XRP to institutional investors. The SEC alleged that Ripple continued to violate US securities laws after the December 2020 court filing (post-complaint).

In April 2024, Ripple filed its remedies-related opposition brief, arguing that post-complaint activity complied with US securities laws. Ripple also proposed a $10 million penalty based on post-complaint activity and the lack of fraud or recklessness.

XRP and the broader crypto market will likely respond positively to a penalty nearer $10 million. Avoiding an injunction could also boost XRP demand, as an injunction could affect Ripple’s US expansion plans.

Settlements and Appeals

A settlement would also end SEC plans to appeal against the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres also ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

Pro-crypto lawyer Bill Morgan recently commented on the matter of settlements and appeals, saying,

“Settlements generally end matters in dispute, including appeal rights in the current proceedings.”

In July 2023, XRP surged to a high of $0.9527 in response to the SEC vs. Ripple court rulings. A settlement could see XRP retake the $1.00 handle.

Investors should remain alert. Stay updated with our latest news and analysis to manage your exposures to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP hovered below the 50-day and 200-day EMAs, confirming bearish price trends.

A break above the 50-day and 200-day EMAs would support a move toward the $0.5739 resistance level. Furthermore, a breakout from the $0.5739 resistance level could give the bulls a run at the $0.60 handle.

SEC vs. Ripple case-related news would require consideration.

Conversely, a drop below $0.50 could signal a fall toward the trend lines. A break below the trendlines may bring the $0.45 handle into play.

With a 14-day RSI reading of 39.81, XRP could drop below the trend lines before entering oversold territory.