- Ripple’s Chief Legal Officer, Stuart Alderoty, recently disclosed that the US SEC offered a settlement in 2020, proposing to declare XRP a security, a revelation Ripple defiantly rejected.
- Simultaneously, on-chain metrics signal a potential correction for XRP, as large whale investors accumulate and realize profits, underscoring the complexity of Ripple’s legal battle and the challenges ahead for XRP in the market.
Unraveling the Untold Story of Ripple’s Legal Battle and XRP’s Bearish Trajectory
In a surprising twist of events, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, recently unveiled a secret settlement offer from the US Securities and Exchange Commission (SEC) that could have drastically altered the fate of the cryptocurrency XRP.
Three years ago, on December 23, 2020, the SEC proposed a deal to Ripple: the SEC would publicly declare XRP as a security, granting the market a brief window to “come into compliance.” However, Ripple courageously rejected this offer, standing firm in its belief that XRP is not a security.
The revelation comes amidst Ripple’s prolonged legal tussle with the SEC, which commenced in 2020. Alderoty shed light on the SEC’s proposal, emphasizing Ripple’s principled refusal to succumb to the regulatory pressure. Ripple’s argument hinged on two key points: first, asserting that XRP is fundamentally not a security, and second, challenging the SEC’s lack of a comprehensive framework for cryptocurrency compliance.
SEC’s Offer and Ripple’s Resolute Stand
Alderoty disclosed details of the SEC’s offer, highlighting the regulator’s intention to publicly classify XRP as a security. Ripple, however, staunchly rejected the proposal, aiming to dispel any misconceptions about XRP’s nature. Despite the narrative spun by former SEC officials, Ripple’s primary objective was to assert that XRP, in and of itself, should not be categorized as a security.
The Bearish Outlook for XRP
Coinciding with this revelation, on-chain metrics for XRP suggest a bearish trajectory for the altcoin. Large whale wallets, holding between 10 million and 100 million XRP tokens, accumulated an additional 360 million XRP in the past week. While this alone might not signal bearish sentiment, the Network Realized Profit/Loss metric indicates profit-taking activities among significant investors.
The infusion of $223 million worth of XRP into whale holdings, coupled with profit realization, raises concerns about increased selling pressure on the asset. This, in turn, suggests a potential correction in XRP’s price soon. At the time of writing, XRP is valued at $0.6149 on Binance.
In rejecting the SEC’s offer, Ripple not only defended its stance on XRP’s classification but also set the stage for a prolonged legal battle that continues to shape the narrative of cryptocurrency regulation. As XRP faces potential market corrections, the aftermath of this revelation adds an intriguing layer to Ripple’s journey in the crypto space.
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