Ripple counters $2 billion SEC fine: public backlash swings favor away from SEC

As Ripple challenges the SEC’s $2 billion demand, is the tide of public opinion turning against the regulator, fueled by frustrations within the crypto community?

In the ongoing legal tussle between Ripple (XRP) and the U.S. SEC, the stakes are high as the SEC pursues a staggering $2 billion fine against the blockchain company. 

The list of claims includes $876 million in compensatory damages, $198 million in interest on the amount mentioned, and another $876 million in civil penalties.

The company’s response, outlined in a court filing dated Apr. 22, proposes a different approach: advocating for a civil penalty not exceeding $10 million.

Stuart Alderoty, Ripple’s Chief Legal Officer, suggested the company’s position in a statement on X, highlighting that the case lacks allegations or findings of recklessness or fraud. 

He suggested the SEC’s demand as part of a broader pattern of intimidating actions against the crypto industry in the U.S.

Ripple CEO Brad Garlinghouse echoed these sentiments, warning of the long-term repercussions of the SEC’s actions and policies. 

Amid these legal battles, Ripple, in its filing, contends that it has adapted its practices, aligning its XRP token sales method with court mandates and ensuring compliance with regulatory requirements both domestically and internationally.

Ripple also maintains that it has made strong efforts to address concerns raised by the court and regulatory authorities, signaling its willingness to cooperate within the bounds of the law.

How did the public react?

In response to the ongoing legal dispute, social media users have expressed a range of opinions, reflecting concerns and frustrations against the SEC.

An X user evoked the image of a lawyer facing criticism from a judge, drawing parallels to the SEC’s handling of the situation. 

He suggests the perceived irony of an institution tasked with upholding the law facing accusations of straying from its intended purpose.

Another user raised questions about accountability, linking the SEC’s actions to extortion and questioning who holds the investigators themselves accountable.

Meanwhile, expressing dissatisfaction with SEC Chair Gary Gensler’s approach, another user suggested that Gensler’s actions have a detrimental impact on the crypto industry in the U.S. 

Some users even offered a perspective on the proposed penalty, stating that $10 million would be a fair resolution and urging the SEC to settle the matter swiftly. 

What remains common in all these opinions is that the SEC has little to no public support, and Ripple Labs has already won in the court of public opinion.

XRP price analysis 

After the recent global crypto market crash on April 11, which saw prices plummet to $0.42, XRP has shown signs of recovery, trading at $0.55 as of Apr. 24, reflecting a 30% rebound.

This level has served as a strong support area since last year. This support has been tested twice previously, notably in October 2023 and February 2024.

Despite this resurgence, XRP’s trading volume has decreased by $900 million within the weekly timeframe, signaling a potential correction toward the $0.50 territory in the near future.

Technically, XRP faces resistance levels between $0.57 and $0.58, where moving averages are positioned. 

Bulls must surpass this supply zone to sustain the recovery momentum. A successful breach could propel XRP towards $0.60 and subsequently target the psychological barrier of $0.70, indicating a potential 28% increase.

However, it’s crucial to monitor key support levels, including $0.52 and the psychological threshold at $0.50. In bearish scenarios, XRP may seek support around the swing low of $0.42.

Whales on the move

Despite recent price fluctuations, XRP has maintained a range between $0.45 and $0.70 over the past few months, attracting investors who perceive this range as a buying opportunity.

Market intelligence from Santiment reveals a notable trend: the number of wallets holding at least 1 million XRP tokens has been steadily increasing over the last six weeks, reaching 2,013, just shy of the previous all-time high recorded in June 2023.