XRP community members are eyeing the $1.375 level as speculation grows around an alleged $100 million settlement between Ripple and the U.S. Securities and Exchange Commission (SEC).
This speculation has accelerated following the latest SEC filing, which refutes Ripple’s insistence on a $10 million remediation amount for securities law violations.
The source of speculation about a $10 billion settlement
In previous filings, Ripple drew inspiration from the $420 million fine issued to Terraform Labs (TFL) to strengthen its stance on a smaller fine, rather than the $2 billion penalty sought by the SEC.
However, in a letter to District Judge Analisa Torres on Friday, the SEC stressed that Ripple’s situation is different from Terraform Labs. The regulator noted that TFL went bankrupt and ceased operations, agreeing to substantial compensation to investors, among other settlement terms.
However, the SEC stressed that Ripple had not agreed to any such settlement terms during its legal case, further invalidating the comparison. Additionally, the regulator corrected Ripple’s assessment of a $420 million civil penalty against Terraform.
According to the SEC, the actual percentage is 11.7% of Terraform’s $3.5 billion in gross profits from the breach, not the 1.27% proposed by Ripple.
Notably, the SEC seeks to collect $876.3 million in gross profits from Ripple. The regulator believes that if the same 11.7% ratio had been applied, the resulting civil penalty would have been approximately $102.6 million.
This SEC calculation has led some XRP community members to believe that the SEC might consider dropping its initial demand for a $2 billion fine against Ripple, an unlikely scenario.
XRP Army Aims for $1.375 XRP
Given that the SEC is now demanding that Ripple pay $100 million, the XRP Army believes a settlement is imminent. Interestingly, the founder of Humanitarian Trust Compliance Services even speculated that the final settlement amount would be between $50 million and $62.5 million.
Meanwhile, he predicts that XRP will rise to $1.375 in response to the hypothetical settlement. As of now, XRP is currently trading at $0.492.
Clarification of Views on $10 Billion Settlement
While Ripple’s Chief Legal Officer Stuart Alderoty previously suggested that the SEC had dropped its $2 billion demand based on their recent filing, prominent community members like Moon Lambo have suggested otherwise.
A careful reading of the SEC's wording does not support that view, they argue. SEC lawyer Marc Fagel also agreed with Moon Lambo, emphasizing that the explanation for reducing the settlement amount was incorrect. Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include those of the author and do not necessarily reflect the views of The Crypto Basic. We encourage readers to conduct in-depth research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
English 
Chinese (Hong Kong) 
Chinese (China)