XRP News Today: Settlement Prospects Brighten as SEC Reschedules Closed Meeting

Is XRP eyeing a breakout? Partially reversing a 9.00% slide from Thursday, July 18, XRP gained 0.54% on Friday, July 19, closing at $0.5732. Settlement hopes influenced buyer appetite for XRP.

SEC vs. Ripple: SEC Relights Settlement Hopes

On Friday, the SEC rescheduled the July 18 closed meeting to July 25. While the meeting is closed to the public, investors expect the Ripple case to be a talking point.

According to the Sunshine Act Notice, the SEC will discuss,

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

Under the Sunshine Act, the SEC does not have to disclose an attendee list. The SEC only needs to give notice of meetings and the general topics for discussion. Ripple could also be attending the meeting to discuss settlement terms.

Mid-Week XRP Volatility and Settlement Speculation

On Wednesday, July 17, XRP surged 8.00% on hopes of a settlement. However, XRP tumbled 9.00% on Thursday, July 18, in reaction to the news of the SEC canceling its closed meeting.

Speculation of a settlement could fuel another XRP breakout.

Why Would the SEC Settle?

In July 2023, Judge Torres ruled that Ripple violated US securities laws for selling unregistered XRP to institutional investors.

In March 2024, the SEC filed its remedies-related opening brief, arguing for a $2 billion penalty and an injunction prohibiting XRP sales to institutional investors. The SEC also alleged Ripple continued breaching US securities laws after the December 2020 complaint.

Ripple filed its remedies-related opposition brief in April 2024, pursuing a $10 million penalty. Importantly, Ripple stated that post-complaint activity did not breach US securities laws. According to the filing, XRP sales to institutional investors included:

• Sales to accredited investors, exempt from US securities laws.
• Sales via On-Demand Liquidity (ODL) contracts. ODL contracts prevent profits or losses.

XRP sales via ODL contracts cannot meet the third prong of the Howey test. The third prong of the Howey test is the expectation of profits derived from the efforts of others.

The SEC might consider Ripple’s post-complaint activity and Judge Torres’s possible ruling. A penalty closer to $10 million would be a significant loss for the SEC, given its legal bill.

Moreover, the SEC filed a remedies-related reply brief in April to counter Ripple’s proposal for a $10 million penalty. The SEC calculated a penalty floor of $102.6 million, significantly higher than Ripple’s $10 million offer.

After legal fees over $150 million, Ripple might accept a $102.6 million settlement offer. A settlement would also prevent the SEC from appealing rulings from the case.

Programmatic Sales of XRP Ruling

In July 2023, Judge Torres also ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

The SEC filed a Motion for Interlocutory Appeal in August 2023 to try to overturn the ruling. However, Judge Torres rejected the Motion in October 2023, meaning the SEC must wait until the final verdict before filing an appeal.

Ripple considered the Programmatic Sales of XRP ruling a big win for the crypto industry. A settlement would cement the ruling that influenced the Binance Case.

In June 2024, Judge Amy Berman Jackson dismissed the SEC charges against Binance, claiming that secondary sales of binance coin (BNB) qualify as securities under the Howey test. Judge Jackson cited the Programmatic Sales of XRP ruling, surmising,

“The court is inclined to agree with the approach of the court in Ripple Labs, since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives […].”

An official end to SEC plans to appeal against the Programmatic Sales ruling could boost XRP demand.

How Could XRP React to a Settlement?

On July 13, 2023, XRP surged from $0.4711 to a session high of $0.9327 in reaction to the Programmatic Sales of XRP ruling. However, XRP was below $0.50 by mid-August because of SEC appeal expectations.

A settlement could fuel an XRP break above $1.00.

Investors should remain vigilant as the SEC vs. Ripple case remains a key talking point. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP sat comfortably above the 50-day and 200-day EMAs, confirming the bullish price trends.

A return to $0.60 could signal a move toward the $0.6609 resistance level. An XRP break above the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

Investors should consider SEC vs. crypto case-related news.

Conversely, an XRP break below the $0.5739 supported level could bring the 200-day EMA into play.

With a 14-day RSI reading of 63.80, XRP may break above the $0.60 handle before entering overbought territory.