- Ripple-SEC settlement proposal denied, impacting XRP market dynamics.
- XRP price dropped over 5% following the announcement.
- Market reactions include options open interest crashing by 76%.
The settlement denial holds significance due to its immediate impact on XRP’s market value, triggering strategic shifts among derivatives traders.
Legal Developments
Judge Analisa Torres denied Ripple and the SEC’s joint motion to reduce Ripple’s penalty from $125 million to $50 million. This decision nullifies a settlement attempt concerning Ripple’s offering of unregistered securities.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed that Ripple and the SEC will revisit the settlement motion.
“Nothing in today’s order changes Ripple’s wins (i.e., XRP is not a security, etc). This is about procedural concerns with the dismissal of Ripple’s cross-appeal. Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together.”
Bill Morgan, a cryptocurrency lawyer, mentioned the need for procedural correction in the settlement filing process.
Market Reactions
XRP demonstrated a steep price drop after the court’s decision, unsettling investor expectations. Market reactions were swift, particularly in XRP derivatives with a $160 million decline in Open Interest. The market’s focus shifted as traders reassessed their positions.
Financial impacts include a 6.5% dip in XRP value. Expert opinions suggest a possible rebound if XRP surpasses its current resistance level of $2.50, indicating potential market recovery if strategic resistance levels are breached.
Experts anticipate procedural adjustments in the Ripple-SEC case. Reflecting on historical precedents, the litigation’s continuation underscores the complex regulatory landscape affecting cryptocurrency market dynamics.
