Members of the XRP community are eagerly anticipating a potential $1.375 price target as rumors swirl around a reported $100 million settlement between Ripple and the U.S. SEC.
The speculation gained traction after the SEC’s recent filing, which pushed back against Ripple’s proposal of a $10 million fine for violating securities laws. This buzz stemmed from Ripple’s comparison to a $420 million penalty imposed on Terraform Labs (TFL) in a previous filing, arguing for a lesser penalty than the SEC’s demand for $2 billion.
However, the SEC clarified in a letter to District Judge Analisa Torres that Ripple’s situation differs from TFL’s, as TFL is bankrupt and ceasing operations while agreeing to compensate investors. The SEC emphasized that Ripple has not agreed to similar terms, discrediting the comparison. Additionally, the regulator corrected Ripple’s assessment of TFL’s civil penalty, revealing a higher percentage of gross profits.
With the SEC seeking $876.3 million in profits from Ripple, applying the same ratio as with TFL could result in a settlement closer to $100 million, sparking hope among XRP community members for a reduced penalty.
Anticipating a potential settlement, the XRP Army is eyeing a price target of $1.375, with some speculating a settlement range between $50 million and $62.5 million. Ripple’s Chief Legal Officer suggested a reduced penalty, but reputable community members argue otherwise, emphasizing the need for careful interpretation of the SEC’s statements.
As XRP currently trades at $0.492, the community remains optimistic about a potential settlement and the resulting impact on the cryptocurrency’s price. It is important for readers to conduct thorough research before making any investment decisions, as the views expressed in this article are not financial advice and solely represent the author’s opinions.