XRP’s price has surged by 26% following significant developments in Ripple Labs’ ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). On August 7, a federal judge in New York ordered Ripple Labs to pay a $125 million civil penalty, bringing the nearly three-year securities lawsuit closer to its conclusion.
The lawsuit, initiated by the SEC in December 2020, accused Ripple of selling XRP as an unregistered security. However, the latest ruling, which permanently restrains Ripple from violating U.S. securities laws, is being seen as a victory by Ripple executives and many within the crypto industry.
XRP is up 44.88% over the past 30 days. Source: CoinMarketCap
Ripple Labs CEO Brad Garlinghouse took to X (formerly Twitter) to express his satisfaction, stating, “This is a victory for Ripple, the industry, and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.” Co-founder Chris Larsen echoed these sentiments, suggesting that this ruling could signal the end of the current administration’s “war on crypto.”
The legal news provided a significant boost to XRP, which rallied to $0.63, recovering most of its losses from the broader crypto downturn earlier in the month. As of the latest data, XRP is trading at $0.59.
A retrace back to $0.55 will wipe almost $25 million in long positions. Source: CoinGlass
The price surge also had a substantial impact on the futures market. According to CoinGlass data, the unexpected upward movement led to the liquidation of over $5.4 million worth of short positions, with future traders caught off guard. Analysts suggest that if XRP’s momentum continues and reaches $0.65, another $20 million in short positions could be liquidated.
Crypto lawyer Fred Rispoli highlighted the significance of the ruling, noting that Ripple had likely recouped more than the $125 million penalty from the immediate price increase in XRP. The community sentiment appears to be overwhelmingly positive, with many speculating that the lawsuit’s conclusion could remove previous barriers to XRP’s growth.
