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- SEC’s closed meeting on July 25 is rumoured to have Ripple (XRP) in attendance to discuss settlement.
- According to the Sunshine Act Notice, the things to discuss would include Institution and settlement of administrative proceedings.
XRP makes a 1.76% gain in the last 24 hours, trailing the broader market by just an insignificant margin after extending its 24-hour trading volume by 41%. At press time, the asset was trading at $0.6 and had recorded a 30-day return of 23%.
In examining its on-chain data, CNF observed that the Network Growth metric on XRP Ledger had reached 1,721, indicating a significant surge in adoption and increased traction on the network. On top of that, Santiment data showed that 47,300 active addresses made a successful XRP transaction between July 17 and 18. Interestingly, this remains the highest since March 30.
Reason for the Increasing Adoption
According to analysts, the incredible growth of these metrics mostly precedes a much anticipated technological upgrade or major development. However, that is not the case for XRP. Investors are reportedly piling up the asset ahead of the upcoming settlement between Ripple Labs and the US Securities and Exchange Commission (SEC). Recently, rumours surrounding the closure of the case intensified following reports that the SEC would have a closed meeting on July 25.
In a Sunshine Act Notice found on the Commission’s website, the topic for discussion at the meeting would be “Institution and settlement of administrative proceedings, Resolution of litigation claims, Other matters relating to examinations and enforcement proceedings.” With this, many believe that the Ripple case could be a major topic. A section of the crypto community also suspects that the blockchain company could be in attendance to discuss settlement terms.
According to our analysts, the impact of this meeting on the XRP price should not be trivialized since the market reacted strongly with an 8% surge on July 17 in anticipation of the July 18 meeting. However, the cancellation of the meeting caused the market to tumble by 9%.
Important Updates on the SEC vs Ripple Case
As we reported in July 2023, Judge Analisa Torres awarded a partial victory to Ripple over the securities status of XRP. In the ruling, she clarified that the blockchain company violated securities laws for selling unregistered assets to institutional investors. Fast forward, the SEC filed its remedies-related opening brief this year, proposing a $2 billion penalty and an injunction to prevent the sales of XRP to institutional investors. According to the SEC, Ripple continued to violate securities law even after a complaint was filed in December 2020.
Objecting to the amount quoted as a proposed penalty, Ripple argued that $10 million should be ideal. Also, the defence lawyers argued that its post-complaint activities in no way breached the securities laws. To them, XRP sales were made to accredited investors who are exempted from securities laws. Secondly, sales were made through On-Demand Liquidity (ODL) contracts which prevents profit or loss.
Last month, Judge Amy Berman Jackson cited the ruling on the programmatic sales of XRP to dismiss the SEC’s charges, which claimed that Binance violated securities laws by engaging in secondary sales of Binance Coin (BNB).
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 […].
According to analysts, XRP could target the $0.66 resistance level to enter into the $0.70 zone once Ripple obtains a favourable ruling.
