The digital currency $XRP , which is at the center of the legal dispute between Ripple and the US Securities and Exchange Commission (SEC), is witnessing a significant increase in trader interest, as shown by a rise in open interest (OI). This rise in open interest, in conjunction with recent price movements, indicates growing optimism around the upside potential of XRP as hopes for a legal settlement increase.
According to CryptoQuant's analysis, open interest rising along with prices indicates increased trader interest, meaning investors are increasing their bets in anticipation of a rise in the price of XRP.
While open interest reflects investors' expectations and actions, it may also lead to sudden market fluctuations. Therefore, it is necessary to closely monitor market fluctuations and prioritize risk management before making any investment decisions.
The legal dispute between the SEC and Ripple The legal dispute between the US Securities and Exchange Commission and Ripple is one of the most difficult legal battles in the world of cryptocurrencies. In 2020, the regulator accused the company of offering XRP as an unregistered security. Although the court ruled that the token associated with Ripple were not securities, offering the token to institutional investors was considered securities under federal law. The legal battle escalated when the authority initially demanded a financial penalty of $2 billion. However, after Ripple submitted an offer of up to $10 million, the authority lowered its demands to $103 million.
Recent Defenses and Legal Actions In its latest legal filing, the SEC defended the requested amount, arguing that it was necessary to “deter future wrongdoing in the cryptocurrency industry.” While Ripple remained steadfast in its demands, asking the judge to ensure that the company pays "no more than $10 million" in penalties. The company pointed to the recent settlement between Terra $LUNA and the authority, which amounted to $4.47 billion but ended in a civil penalty of just $420 million, as a model of fairness.
