SEC Cancels Key Ripple Meeting, XRP Plunges: No Settlement in Sight?

In an unexpected turn, the U.S. SEC canceled its closed-door meeting originally set for July 18, which was anticipated to discuss the ongoing Ripple lawsuit. The SEC announced this cancellation on July 17 without providing reasons. However, market participants speculate it may be related to the timely approval process for Ethereum ETFs, set to start trading on July 23. 

The sudden cancellation of the SEC meeting has led to speculation in the crypto community. Some believe the SEC might need more time for negotiations or settlement discussions, while others think new developments requiring further analysis may have emerged.

High Hopes – All Dashed!

The XRP community had high hopes for this meeting, expecting it might lead to a settlement in the protracted legal battle with Ripple. Despite 150 similar meetings that yielded no settlement indications, optimism remained. The Federal Register and the SEC provided no reason for the cancellation, but market participants suspect it might be due to the imminent approval process for Ethereum ETFs, which are slated to commence trading on July 23.

Behind Closed Doors: What Was on the Agenda?

According to the SEC’s Sunshine Act notice, the canceled meeting was set to address four key agendas, including settling administrative proceedings, injunctive actions, and resolving litigation claims. The inclusion of settlement on the agenda fueled rumors that the SEC might agree to a deal with Ripple, sparking widespread speculation among XRP enthusiasts.

Industry Insiders Weigh In

Opinions vary on the SEC’s intentions. Some believe the agency may need additional time to negotiate or address new developments. Yassin Mobarak of Dizer Capital speculated about a potential settlement, while former SEC lawyer Marc Fagel noted that such speculations have repeatedly proven unfounded.

Ripple and the SEC are currently disputing the appropriate penalty for Ripple’s alleged securities law violations. The SEC is demanding a $2 billion fine, whereas Ripple has proposed $10 million. A final ruling is expected by July 31, as reviewed by District Court Judge Analisa Torres.

XRP Takes a Hit

Following the news, XRP experienced an 8% price drop to $0.58, with a 20% surge in trading volume, indicating heightened trader interest. Despite this correction, XRP is aiming for at least $1, driven by recent trends and open interest in futures contracts reaching $1.37 billion. Chart patterns and indicators suggest a period of consolidation ahead.

With every delay in the Ripple vs SEC case XRP is taking the negative pressure. Will this end soon, or XRP will see more bloodbaths?