XRP News Today: Ripple Counters SEC’s $2B Penalty Request in Court Filing

Bob Mason
Published: Apr 24, 2024, 01:53 GMT+00:00

Key Points:

  • XRP declined by 2.09% on Tuesday (April 23), ending the session at $0.5447.
  • Uncertainty about the SEC vs. Ripple case left XRP trailing the broader crypto market.
  • On Wednesday, SEC vs. Ripple court filings will warrant investor attention.
XRP News Today

The Tuesday Overview

XRP fell by 2.09% on Tuesday (April 23). Partially reversing a 6.00% rally from Monday, XRP ended the session at $0.5447.

Ripple Files Redacted Opposition Brief to Contest SEC Claims

On Tuesday, SEC vs. Ripple case-related news drew investor attention.

Ripple Chief Legal Officer Stuart Alderoty announced the availability of the redacted opposition brief, saying,

“Our opposition to the SEC’s request for $2B in penalties for legacy institutional sales is now public. In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the US. We remain confident that the Judge will approach this final remedies phase fairly.”

Ripple presented arguments that future violations will not recur. Significantly, Ripple addressed the SEC claims of post-complaint breaches of US securities laws, stating,

“It has ensured that its counterparties qualify as accredited investors. And its subsidiaries have obtained licenses to sell XRP as a digital currency outside of the United States, under the supervision of regulators, who do not treat XRP sales as sales of securities.”

Ripple also that it limited post-complaint XRP sales to ODL sales, stating that Ripple’s ODL contracts protect buyers from losses and prevent them from earning profits. Furthermore, most of Ripple’s ODL business is outside of the US.

Addressing the SEC push for a $2 billion disgorgement, Ripple argued,

“The agency also seeks disgorgement barred by controlling Supreme Court and Circuit precedent and a separate penalty that exceeds by more than 20 times what it has obtained from any other defendant or respondent in a digital-asset case.”

Ripple cited US case law, specifically Govil and Liu.

  • SEC vs. Govil: Court held that the SEC may not ask for a crippling disgorgement award w/o proving that investors suffered actual financial harm. In other words, no harm, no foul. The SEC failed to overturn the ruling on appeal,
  • Liu vs. SEC: A disgorgement award must not exceed a wrongdoer’s net profits and must go to the victims.

Ripple presented strong arguments against a punitive disgorgement and an injunction. However, investors must wait for the SEC reply brief. The SEC must file its reply brief by May 6. The court will then deliberate and deliver a ruling.

Ripple CEO Brad Garlinghouse took a swipe at the SEC, saying,

“Feels apropos that we file our response on the same day that 2 SEC lawyers “resign” for their (mis)conduct in the Debt Box case… The US will be picking up the pieces of the agency’s disastrous policies long after Gensler is gone.”

XRP Price Action

Weekly Chart sends bullish longer term price signals.
XRPUSD 240424 Weekly Chart

Daily Chart

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

An XRP breakout from the 50-day and 200-day EMAs and the $0.5739 resistance level would bring the $0.6609 resistance level into play. Selling pressure may increase at the $0.5739 resistance level. The 50-day and 200-day EMAs are confluent with the resistance level.

SEC vs. Ripple case-related updates need investor consideration.

Conversely, a fall through the $0.54 handle could give the bears a run at the trend lines and the $0.50 handle.

The 14-day RSI reading, 47.50, suggests an XRP drop below the trend lines before entering oversold territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 240424 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered above the 50-day EMA while sitting below the 200-day EMA. The EMAs affirmed the bullish near-term but bearish longer-term price signals.

A breakout from the 200-day EMA would give the bulls a run at the $0.5739 resistance level. A break above the $0.5739 resistance level would support a move to the $0.60 handle.

However, a break below the $0.5361 support level would bring the 50-day EMA into play.

The 4-hourly RSI, with a reading of 58.34, indicates an XRP break above the 200-day EMA before entering overbought territory.

XRP 4-Hourly Chart sends bullish near term price signals.
XRPUSD 240424 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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