- Legal experts are skeptical about a settlement, but Ripple’s CEO remains optimistic, citing favorable court rulings for XRP.
- XRP’s market activity has increased, with Open Interest hitting a year-to-date high and trading volume surging over 41% in the past 24 hours.
XRP surged above $0.60 for the first time since April, climbing 8.01% on July 16. This rise is driven by speculation that Ripple Labs might settle its ongoing legal dispute with US regulators. This surge stands out as the broader crypto market declined by 1.07% to a total market capitalization of $2.237 trillion.
XRP Open Interest Reaches New Heights
The SEC v Ripple case remained a focal point as speculation grew regarding a potential settlement. According to legal analysts, it is unlikely that Ripple and the SEC will settle, given the company’s recent court successes. Marc Fagel, a former lawyer of SEC, denied speculations about a settlement.
During an interview with Bloomberg Television, Ripple Labs CEO Brad Garlinghouse did not give much information about the ongoing negotiations with the SEC. However, he said he was optimistic that a resolution would be reached soon, citing a previous court ruling in Ripple’s favor. This ruling held that XRP sales to retail investors on exchanges were not securities and, therefore, challenging the SEC’s regulatory reach.
As highlighted in our previous article, the SEC’s closed meeting planned for July 18 has only added fuel to the fire in the crypto community. Fagel said these closed-door meetings are standard and do not indicate any kind of settlement discussions.
I mean, they've had about 150 of these nearly-weekly meetings since the case was filed, and Crypto Twitter was convinced a settlement was being discussed at every one of those meetings, but this is DEFINITELY the one!
[Narrator: It's not the one.]— Marc Fagel (@Marc_Fagel) July 16, 2024
The investors also look forward to the court’s ruling on the matter. It is worth noting that in March 2024, the SEC proposed a $2 billion fine and an injunction on XRP sales to institutional investors, while Ripple proposed a $10 million fine. A verdict favoring Ripple, with a lower penalty and no injunction, would be seen as a significant victory for both Ripple and the US digital asset sector.
The recent Binance ruling has spotlighted the crypto market and shaped opinions on whether XRP is a security or a commodity. Judge Amy Berman Jackson ruled against the SEC in this case, saying that secondary sales of Binance coin (BNB) are not securities under the Howey test. Judge Jackson cited Judge Analisa Torres’s Programmatic Sales of XRP ruling, noting the inconsistency in the SEC’s approach.
XRP’s Open Interest Reaches New Heights
XRP, which was stagnant at around $0.5, has shown resilience, with Open Interest (OI) reaching a year-to-date high. According to data from Coinalyze, the XRP Open Interest has surged to $602.6 million, including spot and future contracts. Binance exchange remains the leading market for XRP OI, with a recorded volume of $264.8 million. Bybit ranks second with $248.1 million, while WOO X recorded the least with $381,600.
It is imperative for investors to keep track of Open Interest, as it helps them understand the direction of the market. Open Interest helps identify which way the trend is moving, as Rising Open Interest supports Uptrends, and Falling Open Interest supports Downtrends. With XRP’s Open Interest reaching a record high, it signifies increased market liquidity and trading activity.
As of this writing, XRP is trading at $0.57, a decline of 6% in the past 24 hours. The trading volume has also surged by over 11% to $3.9 billion, highlighting the positive impact of key metrics like Open Interest.
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