How did Ripple respond to the SEC’s fine request? How has the market reaction been? Author Investing.com

In the legal battle between Investing.com and the SEC, the focus is on the $2 billion fine that the SEC is demanding from the Blockchain company.

The SEC is demanding $876 million in compensation and an additional $200 million in interest. The regulator also said the company must pay an additional $876 million to cover civil penalties. This means that Ripple may end the legal process by paying a fine of nearly $2 billion. However, it seems that the Blockchain company does not accept the SEC’s fine.

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In its response to the court on April 22, Ripple stated that the case was not caused by careless transactions or did not constitute fraud, and offered to pay a much lower fine. Accordingly, Ripple has a plan to pay a civil penalty of $10 million in its summary response.

In his statement, Ripple lawyer Stuart Alderoty interpreted his request as a step taken to intimidate the crypto industry in the USA. Ripple CEO Brad Garlinghouse made similar statements rejecting the fine, warning that the SEC’s actions and policies would have negative effects in the long term.

In its summary response, Ripple also claimed that necessary updates had been made, that XRP sales had been brought into compliance in accordance with the court order, and that they were in compliance with regulatory requirements both in the US and internationally. Ripple also stated that they are willing to cooperate within the law in the future.

How did the market react?

The low probability of a settlement in the litigation process, which is considered the biggest problem for XRP trading, seems to have disappointed the XRP community in general.

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Although many investors did not find the SEC’s approach correct, they saw the probability of Ripple winning the case as low and agreed that the best outcome would be a settlement. However, the gap between the $10 million penalty payment proposed by Ripple versus the $2 billion demanded by the SEC reveals that there is a major obstacle to a possible agreement.

Latest situation in XRP

XRP saw a jump of nearly 10% at the beginning of the week following Ripple’s response to the court, increasing its value increase to 36% from the bottom of $ 0.41 on April 13. The cryptocurrency, which has seen some decline in the last 48 hours, dropped from its peak of $ 0.57 this week to the limit of $ 0.54.

XRP moves by creating higher lows, albeit at low rates, over a one-year period. Finally, XRP appears to have solid support at $0.5 this year. However, while the cryptocurrency continued to remain under pressure from the lawsuit, it failed to break through the resistance zone between $0.65 – $0.7 after reaching a peak of $0.93 after the partial victory in July last year.

In the next period, the SEC is expected to submit its defense on May 6, following Ripple’s. As the final decision in the case is approached, the market expectation is that XRP will begin a serious upward trend after a decision in favor of Ripple. However, if the court makes a decision in favor of the SEC and this decision disrupts the operation of Ripple, this causes comments that XRP may be subject to serious sales. In this environment of uncertainty, it seems that XRP continues its slightly upward trending band movement, regardless of the market.