The litigation between the US Securities and Exchange Commission (SEC) and Ripple is about to reach its climax. The SEC will release its response to the lawsuit today. Ahead of this important document, XRP Coin whale transactions are on the rise. Also in the midst of the legal showdown, a notable transaction by a mysterious whale intensified market reactions and volatility. On the other hand, the XRP Coin price is on the rise.

SEC will announce the text of the answer in the Ripple case!

Anticipation is building for the SEC’s May 6 reply brief. This document is crucial as it precedes Judge Analisa Torres’ ruling on penalties for Ripple’s alleged securities violations. Cryptocoin.comPreviously, in July 2023, Judge Torres found that Ripple violated the US Securities Act by failing to register XRP as a security during institutional sales.

The stakes are high, as the SEC has proposed a staggering $876 million in disgorgement, plus equal civil penalties and additional interest, totaling approximately $1.95 billion. In response, Ripple argues that any penalty should not exceed $10 million. In this regard, it emphasizes that there was no fraud or cheating in its operations. Amid these developments, the crypto community remains wary of the SEC’s next moves, especially after Judge Torres’ July 2023 ruling declassifying XRP’s programmed sales as securities transactions. This decision is a crucial element that the SEC is likely to appeal, continuing the legal crackdown on XRP.

XRP Coin price surges ahead of the document!

Before Judge Torres’ ruling, whales moved a large number of XRP coins. The transfer of 28.24 million XRP tokens worth about $14.94 million to the Bitstamp exchange attracted attention. The move came at a time when XRP’s market sentiment has improved and there has been a sharp increase in positive expectations. The increased speculation led to a surge in XRP coin prices. Thus, the token briefly rose from $0.53 to $0.57, gaining nearly 8%. However, afterwards, XRP Coin lost some altitude. At the time of writing, the token was trading at $0.5515, up 4.27% on a rose basis.

XRP Price Performance. Source: CoinMarketCap

Still, the crypto market’s reaction to the upcoming court rulings will be critical. According to experts, it is possible that the sell-off could intensify or pave the way for further price rebounds. The XRP community is eagerly awaiting the outcome of this development.