SEC seeks $2B from Ripple; Bitcoin's Rebound

London: 26 March 2024 (TraderMade): The SEC is seeking $2 billion from Ripple Labs over XRP sales. Meanwhile, Bitcoin rebounds, reclaiming $71,000 amid halving anticipation. Dive into the latest developments shaping the cryptocurrency landscape.

Key Takeaways

• The US SEC is seeking fines and penalties totalling $2 billion from Ripple Labs over sales of the cryptocurrency XRP.
• Ripple's Chief Legal Officer, Stuart Alderoty, criticized the SEC for wanting to "punish and intimidate" Ripple and the cryptocurrency industry instead of faithfully applying the law.
• Bitcoin prices rebounded to reclaim $71,000 on March 25, following one of the largest accumulation days in years.
• Blockchain analytics firm Santiment reported that wallets holding between 10 and 10,000 coins accumulated 51,959 BTC on March 24, worth around $3.4 billion at the time.

The Regulatory Storm: SEC vs. Ripple

In a dramatic turn of events, the U.S. SEC is seeking fines and penalties totalling $2 billion from Ripple Labs over the sale of its cryptocurrency, XRP.

Stuart Alderoty, Ripple's Chief Legal Officer, took to social media to reveal that the SEC has filed court papers under seal, requesting hefty penalties from U.S. District Judge Analisa Torres in Manhattan. The SEC was expected to release the redacted documents on Tuesday.

Alderoty criticized the SEC, stating, "Rather than faithfully applying the law, the SEC remains bent on wanting to punish and intimidate Ripple—and the industry at large." Meanwhile, a spokesperson for the SEC has declined to comment on the matter.

The legal battle between Ripple and the SEC began in 2020, when the SEC sued Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen, accusing them of illegally raising more than $1.3 billion through an unregistered securities offering by selling XRP.

While the SEC dropped its claims against Garlinghouse and Larsen last October, the case against Ripple continues to be closely watched as one of the largest brought by the SEC in the cryptocurrency space.

The crypto industry has been closely following this case, with major exchanges like Coinbase and Binance pointing to Torres' ruling in urging other judges to dismiss the SEC's claims.

The industry argues that traditional securities laws do not fit digital assets and calls for new laws and regulations.

Bitcoin's Bullish Momentum: Pre-Halving Retrace Over?

While Ripple faces regulatory challenges, Bitcoin has rebounded strongly, reclaiming the $71,000 price level in late trading on March 25. This surge follows one of the largest accumulation days in years, with key stakeholders accumulating 52,000 BTC over the weekend.

Blockchain analytics firm Santiment reported that wallets holding between 10 and 10,000 coins, termed as 'sharks' and 'whales', accumulated 51,959 BTC on March 24, worth around $3.4 billion at the time.

This represents 0.263% of the entire currently available supply being accumulated in just one day.

As the Bitcoin halving approaches, scheduled for on or around April 19, analysts expect these large wallets to continue growing, potentially resulting in a positive impact on crypto-wide market caps.

Crypto analysts had previously expressed concerns about a more significant pre-halving retrace. Still, Bitcoin only fell around 17% from its March 14 all-time high of $73,738, dipping to $61,494 on March 20, according to CoinGecko.

Technical analyst 'Rekt Capital' noted that if this is indeed the end of the pre-halving retrace, Bitcoin will have almost equalled the 2020 pre-halving retrace.

Market Volatility and Fragmented Liquidity

Despite the bullish momentum, market volatility remains a concern. Crypto research firm Kaiko revealed that selling intensified following the U.S. market close, indicating that "liquidity in the cryptocurrency market is not only fragmented across exchanges but also across trading pairs."

At the time of writing, BTC was trading up 5.2% on the day at $70,252 after hitting an intraday high of $71,000.

Conclusion

The cryptocurrency market is experiencing both regulatory challenges and bullish momentum. While Ripple faces a potentially significant fine from the SEC, Bitcoin is showing resilience and bullish signs, with analysts closely watching the pre-halving dynamics.