TL;DR
- SEC Cancels Closed-Door Meeting: The U.S. SEC unexpectedly canceled a closed-door meeting originally scheduled for July 18, leaving the Ripple-XRP community in suspense.
- Settlement Speculation: The meeting’s agenda included settlement discussions, fueling rumors of a potential resolution between the SEC and Ripple.
- Spot Ethereum ETF Approval: Coinciding with the cancellation, XRP’s price dropped, and market participants speculate that it may be related to upcoming spot Ethereum ETF approvals.
In an unexpected turn of events, the U.S. Securities and Exchange Commission (SEC) has canceled its closed-door meeting that was originally scheduled for July 18. The meeting, which had been eagerly awaited by the Ripple-XRP community, was rumored to potentially address the ongoing legal battle between the SEC and Ripple.
The cancellation notice was quietly updated on the SEC’s website on July 17, catching many by surprise. XRP enthusiasts had hoped that this closed-door meeting might lead to a settlement between the regulatory agency and Ripple, putting an end to the protracted legal dispute.
Top SEC commissioners and officials were initially slated to attend the meeting, but it has now been called off without explanation. The SEC’s Sunshine Act notice indicated that the meeting would focus on several key agendas, including the settlement of administrative proceedings, injunctive actions, and resolving litigation claims. The inclusion of “settlement” on the agenda fueled speculation that a resolution might finally be within reach.
Recurring Speculation and Ripple-SEC Legal Debates
Yassin Mobarak, the founder of Dizer Capital and a strong supporter of XRP, had previously discussed the possibility of an SEC-Ripple settlement. On the other hand, ex-SEC lawyer Marc Fagel highlighted that the regulator has conducted around 150 private meetings almost every week since the Ripple lawsuit commenced.
Despite widespread speculation, these meetings have consistently failed to yield any settlement discussions. Apart from the settlement issue, the SEC and Ripple have been engaged in heated debates over the appropriate penalty for Ripple’s alleged violation of securities laws.
The SEC is seeking a hefty fine of $2 billion, while Ripple contends that a much lower penalty of $10 million would be more reasonable. As the arguments continue to be reviewed by District Court Judge Analisa Torres, legal experts suggest that a final ruling could emerge by July 31. The XRP community remains on edge, hoping for clarity and closure in this long-standing legal saga.
Spot Ethereum ETF Approval as a Likely Factor
It was quite intriguing how the cancellation of the Sunshine Meeting happened right when XRP’s price took a nosedive. The cryptocurrency plummeted by more than 8% to $0.58 after the announcement.
Even though the SEC meeting wasn’t directly related to Ripple, the transfer of 150 million XRP alongside the coincidental timing sparked speculations about a possible resolution.
Market participants speculate that the cancellation may be related to the approval process for spot Ethereum exchange-traded funds (ETFs). Several Ethereum ETFs have received preliminary approvals, with all issuers completing the necessary S-1 requirements.
These Ethereum ETFs are predicted to start trading on July 23. The cancellation of the closed-door meeting by the SEC has left the XRP community eagerly awaiting the next move. It’s unclear whether the decision was swayed by the Ripple lawsuit or other reasons, but everyone is now focused on the district court for a final outcome.
