Ripple’s legal clash with the U.S. Securities and Exchange Commission has approached a pivotal juncture as the agency prepares for a closed meeting on April 3. The outcome of this session could significantly influence Ripple’s operations and XRP’s market performance in the short term.
Brad Garlinghouse recently announced that the SEC is expected to withdraw its appeal against a key court ruling that favored Ripple. The ruling had previously determined that Ripple’s programmatic sales of XRP did not violate securities laws. Despite this, the SEC has yet to make an official statement on the withdrawal plan.
Alongside this, Ripple’s legal team has revealed new settlement terms. These include reducing the SEC’s proposed penalty from $150 million to $50 million and lifting restrictions on XRP institutional sales. The SEC had initially sought a $2 billion penalty and an injunction on such sales.
XRP experienced a steep decline after Garlinghouse’s announcement, shedding 19 percent to trade at $2.1088. While the token posted a 2.36 percent gain on April 1, it underperformed the broader market, which rose 2.81 percent that day. The upcoming SEC decision is now seen as a defining moment for XRP’s immediate future.
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Legal Countdown and Market Uncertainty Keep XRP Under Pressure
Legal observers believe that a formal withdrawal by the SEC may still take several weeks. Pro-crypto attorney Fred Rispoli has said the SEC could vote within 30 days, with Judge Analisa Torres possibly removing the injunction within the same period.
This timeline suggests a potential full legal resolution within 60 days. XRP price movement reacts to fundamental market trends and general sentiment dynamics.
The approval status of 18 XRP-spot exchange-traded funds submitted to the U.S. market is under scrutiny by investors because regulatory decisions could propel XRP prices toward the $3.55 target range, but failed approvals may restrain future ascent.
The trading environment becomes uncertain due to macro risks such as elevated trade relations disturbances and caution from U.S. economic growth predictions. Equity market gains have not convinced institutional investors to reduce their level of market caution.
Bitcoin-related exchange-traded funds have experienced ongoing withdrawals since investors show concern about policy statements scheduled for April 2.
As the April 3 SEC meeting approaches, XRP’s legal and market outlook hangs in the balance. The crypto market will watch closely for signs of finality in Ripple’s long-standing case and any regulatory signals that could impact the broader industry.
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