The price of XRP experienced a dramatic surge of 26% following a significant development in the ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC). This development, hailed as a “victory” by Ripple executives, suggests the case may be nearing its conclusion.
On August 7th, a federal judge in New York issued a ruling that ordered Ripple Labs to pay a $125 million civil penalty. Additionally, the court imposed a permanent injunction on Ripple, prohibiting them from further violations of US securities laws related to the case.
This ruling signifies a potential end to the legal dispute that began in December 2020 when the SEC filed a lawsuit alleging that Ripple had conducted an unregistered securities offering through the sale of XRP, its native cryptocurrency.
The news of the court’s decision triggered a significant rally in the price of XRP. The cryptocurrency surged by 26%, reaching $0.63 and recouping most of its recent losses due to the broader market downturn. However, at the time of writing, XRP has settled at around $0.59.
Ripple executives expressed optimism about the outcome. CEO Brad Garlinghouse took to social media to proclaim the ruling a “victory for Ripple, the industry and the rule of law.” He further highlighted the removal of the SEC’s legal challenge against the entire XRP community.
Ripple co-founder Chris Larsen echoed this sentiment, expressing relief over the end of the “unhinged campaign” against them by the SEC. He went on to hope that this development could mark a turning point in the current regulatory environment for cryptocurrencies.
The news sparked enthusiastic reactions within the cryptocurrency community, with many viewing it as a positive development for XRP’s future. Crypto lawyer Fred Rispoli acknowledged the unexpected $125 million penalty but pointed out that Ripple’s gains likely exceeded that amount due to the surge in XRP’s price.
Crypto researcher Ripple Van Winkle expressed optimism about XRP’s prospects, suggesting that the legal overhang had been lifted and the price was poised for significant growth.
The rapid price increase caught many short sellers off guard, resulting in the liquidation of a significant portion of their positions. According to data from CoinGlass, over $5.4 million worth of short positions were liquidated within four hours of the price surge. Further liquidations could occur if XRP continues its upward momentum and breaches the $0.65 resistance level.
The recent court ruling and subsequent price surge for XRP mark a pivotal moment in the ongoing legal saga between Ripple and the SEC. While the full implications of the ruling remain to be seen, it appears that the case is nearing its conclusion. This development has instilled optimism within the XRP community and the broader cryptocurrency industry, with hopes that it signifies a more favorable regulatory environment for digital assets.
