Ripple vs SEC Showdown: XRP Stumbles as Crypto Awaits Pivotal August 7 SEC Decision

The crypto world holds its breath as Ripple's legal battle with the SEC reaches a critical juncture—just as XRP's price wobbles under regulatory pressure.

Today's high-stakes SEC meeting could make or break Ripple's future. Will regulators finally drop the hammer, or is this another bureaucratic slow-play? Meanwhile, traders are voting with their wallets—XRP's limp performance suggests Wall Street still treats crypto like a speculative casino.

One thing's certain: when the suits in Washington start playing 4D chess with blockchain, retail investors always lose.

The XRP community and institutions await the dismissal of appeals in the Ripple vs SEC lawsuit. The community sees an upcoming closed-door meeting of the U.S. Securities and Exchange Commission (SEC) as crucial for the end of XRP lawsuit.

The SEC will file a status report in the 2nd Circuit Court by August 15 in response to its earlier decision to settle the lawsuit and drop its appeal. xrp price remained under pressure ahead of this deadline.

Ripple SEC Lawsuit: Much Anticipation For US SEC Closed Door Meeting

No major development happened regarding the XRP lawsuit after Judge Analisa Torres rejected Ripple and the SEC’s motion to drop the injunction and reduce the penalty to $50 million.

The XRP community expects a vote on its appeal dismissal during a scheduled SEC closed-door meeting on August 7.

This speculation arises as former SEC lawyer Marc Fagel’s claimed the need for the agency to get the dismissal approved before the August 15 deadline.

Notably, the SEC plans to discuss institution and settlement of injunctive actions, administrative proceedings’ institution and settlement, resolution of ongoing lawsuit claims, and matters related to enforcement proceedings.

Why the August 15 Deadline Is Crucial?

Former SEC lawyer Fagel reiterated the high odds of appeals dismissal by the parties. He added that the SEC and Ripple must have appeals dismissal on file by August 15 or tell the court about their decision.

The courts have nothing before them, he clarified. The decision depends on the SEC’s status report to drop its appeal, following Ripple dropping its cross-appeal.

Unofficially, the SEC and Ripple agreed to drop their appeals. This happened after the US SEC voted to drop its lawsuit against Ripple in March.

Fagel said Ripple vs SEC lawsuit can be considered concluded if Ripple and the SEC dismiss their appeals by the August 15 deadline. However, if they don’t, the appeals in the court WOULD continue with scheduled trials.

What Happened With the Penalty Kept in Escrow?

Experts such as Marc Fagel and Sherrie clarified that the SEC would never consider penalties in XRP. It is contrary to both the SEC’s history and duties.

Moreover, the penalty will remain in the escrow account until the appeals are dismissed. The transfer will only happen after dismissal of appeals, as confirmed by Ripple and the SEC.

Notably, Judge Analisa Torres’ order on $125 million penalty and injunction will go into effect as the parties dissolve their appeals. This is the official procedure to transfer civil penalties.

XRP Price Performance

XRP price dropped below the $3 psychological level again in the last 24 hours. The price was trading at $2.98, with a 24-hour low and high of $2.91 and $2.99, respectively.

Trading volumes also dropped again, with more than 12% fall over the past 24 hours. This indicate uncertainty among traders.

However, buying activity was noted in the derivatives market. At the time of writing, Coinglass data revealed total XRP futures open interest rising nearly 2% in the last 4 hours.

Moreover, futures OI on CME and Binance climbed more than 1.83% and 2,24% in 4 hours, respectively. This indicated bullish sentiment among derivatives traders to buy the dip.