In a high-stakes legal showdown, Ripple Labs has been pitted against the U.S. Securities and Exchange Commission (SEC), a battle that has seen Ripple prevail in various recent developments. The most recent victory for Ripple was the dismissal of the SEC's case against Ripple's executives, marking a significant milestone in the ongoing legal drama.

However, the SEC seems to be reevaluating its strategy, as it now seeks a substantial disgorgement payment of $770 million from Ripple. Despite the hefty sum, legal experts suggest that Ripple may have viable strategies to significantly reduce this potential financial penalty.

Jeremy Hogan Outlines Arguments for Ripple

Jeremy Hogan, a legal expert closely following the case, has proposed several arguments that Ripple could leverage to cut down on the SEC's proposed disgorgement.

Hogan's first argument revolves around the definition of "disgorgement." He argues that the SEC should base this recovery of alleged profits on Ripple's net profits rather than the gross amount. This distinction is crucial as it allows Ripple to account for legitimate business expenses, potentially resulting in a substantial reduction of the disgorgement amount.

Another crucial point raised by Hogan pertains to the jurisdiction of the SEC. He emphasizes that only XRP sales with a clear connection to the United States should fall under the SEC's purview. This argument, if successful, could limit the scope of the financial penalty imposed on Ripple.

Moreover, a recent court decision, SEC v. Govil, has bolstered Ripple's confidence. This decision underscores that the SEC must demonstrate that investors have genuinely suffered financial losses before seeking substantial disgorgement. Hogan supports this perspective, suggesting that Ripple's liability may hinge on whether XRP investors have indeed incurred losses.

XRP More Popular than Ethereum Among U.S. Audience

While the legal battle rages on, Ripple is experiencing a surge in popularity among cryptocurrency enthusiasts. Google Trends data reveals that XRP has surpassed Ethereum in popularity in 47 U.S. states, with the highest interest stemming from Delaware, Nevada, Louisiana, Arizona, and Hawaii.

One possible reason for this rise in interest is the ongoing lawsuit with the SEC, with Ripple's partial victories in court contributing to positive sentiment among investors. Furthermore, XRP is gaining ground in the global remittance market as more banks and payment providers embrace Ripple's On-Demand Liquidity (ODL) service, utilizing XRP as a bridge currency.

Not surprisingly, XRP has outperformed Ethereum (ETH) in terms of gains this year, with a remarkable 90% increase since the beginning of the year, compared to ETH's 56% growth in the same period.

As of now, XRP stands as the fifth-largest cryptocurrency by market capitalization, trailing only Bitcoin, Ethereum, Tether, and BNB.

The future of Ripple hinges on the outcome of the SEC lawsuit, but the company has demonstrated resilience and innovation in the face of adversity. With a dedicated fan base and a growing global network, Ripple is well-positioned to overcome regulatory hurdles and continue thriving in the dynamic cryptocurrency landscape.

Possible Pullback on the Horizon?

On the technical analysis front, XRP has been on an absolute tear lately, tapping a local high of $0.66 as the general crypto market continues to pull out of the bearish trend. However, as much as bulls would want it, the recent bullish streak recorded by the cryptocurrency cannot go on forever, especially as XRP strays into overheated territory for the first time since July on the RSI.

That said, we suspect that a pullback might be lurking around the corner for XRP, with the $0.68 mark possibly serving as a pivot point for this correction. However, this pullback—if it occurs soon—might be curtailed around the $0.55–$0.58 support area, where more accumulation could take place.

XRP Statistics Data

XRP Current Price: $0.65

XRP Market Cap: $35B

XRP Circulating Supply: 53.6B

XRP Total Supply: 100B

XRP Market Ranking: #5

Feeling confident? Trade your ideas on XRP now.

Disclaimer

This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.