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- Attorney Bill Morgan says that the SEC is seeking an injunction that would stop On-Demand Liquidity (ODL) XRP sales, which would be the biggest obstacle to the expected settlement.
- The agency is also seeking to appeal the court’s decision on the company’s programmatic sales of XRP, as sudden deposits of the token on exchanges spook investors.
The precedent-setting lawsuit between the US Securities and Exchange Commission (SEC) and Ripple enters a critical stage this week. According to one crypto-friendly lawyer, the SEC will attempt to delay the expected settlement as its Hail Mary move as the walls start caving in for Gary Gensler.
As Crypto News Flash reported earlier today, the presiding judge, Sarah Netburn, ordered the SEC to respond to Ripple’s motion by April 29. The blockchain company’s motion seeks to strike expert witness Andrea Fox, whom the agency brought on at the last minute to skew the ruling in its favour. Fox spoke favourably to justify the SEC’s proposed $2 billion penalty.
Earlier today, attorney Bill Morgan took to X to break down the SEC’s play as the deadline for the settlement ruling draws ever closer. He believes that the SEC won’t just roll over and allow Ripple to have its way; instead, the agency intends to put up as many obstacles to the settlement as possible.
This tactic works perfectly for regulators. By delaying a lawsuit and keeping it going for years, they bleed the defendants to submission. After all, the SEC doesn’t need to have the case solved and buried, but Ripple’s operations, partnerships and product launches depend on the ruling. As such, resolving the case as quickly as possible is paramount for Ripple but not for the SEC, and Gensler is seeking to use this to his advantage.
The SEC seeking an injunction that would stop ODL sales and the SEC’s intention to appeal on programmatic sales are bigger obstacles to settlement. https://t.co/BSAnhSv6yk
— bill morgan (@Belisarius2020) April 28, 2024
What’s Next for XRP as Whales Move 74M Tokens?
XRP investors are closely monitoring the legal battle as it could be the most significant factor impacting the token’s price. A favourable ruling—in this case, a low-figure settlement and an “XRP is not a security” verdict—would set up XRP for massive gains.
However, in the short term, XRP holders are closely watching whales who have been moving their tokens to exchanges. Recently, one whale moved over 30 million tokens, worth close to $16 million, to Bitstamp, according to Whale Alert. Another whale moved 23 million tokens, worth $11.6 million, to Binance. Shortly after, another whale moved 21 million XRP, worth $10.6 million, to Binance.
XRP is trading at $0.5122 at press time, losing a measly 1.56% in the past day and just over 5% in the past week. Since being described as a zombie coin by a controversial Forbes article at the end of March, XRP has lost 18.34%, with others on the Forbes list, like Stacks, losing over 35%.
