The price of XRP experienced a significant 26% increase as a New York federal judge neared a resolution in a longstanding securities lawsuit against Ripple Labs. This development was widely regarded as a pivotal moment for the cryptocurrency industry.
On August 7, the court directed Ripple Labs to settle a $125 million civil penalty and issued a permanent injunction preventing the company from future violations of U.S. securities laws. This ruling, reported by Cointelegraph, marks a crucial advancement in the case initiated by the Securities and Exchange Commission (SEC) back in December 2020.
The surge in XRP’s value followed the court’s decision, with its price jumping to $0.63, recapturing most of its recent losses amid the broader downturn in the cryptocurrency market since August 5. At the time this report was published, XRP’s price stood at $0.59, reflecting a 44.88% increase over the past 30 days, according to CoinMarketCap.
Ripple Labs CEO Brad Garlinghouse expressed his relief and optimism on social media, 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.” Ripple Labs co-founder Chris Larsen also commented on the outcome, saying, “The SEC’s unhinged campaign against us is finally over. Let’s all hope this ends this Administration’s war on crypto.”
The financial and industry implications of the ruling have drawn significant attention. Crypto lawyer Fred Rispoli reflected on the financial impact of the ruling on Ripple, noting, “Although I’m surprised at the $125M hit, Ripple more than made that just on the price move in XRP in the last 5 minutes.” Meanwhile, crypto researcher Ripple Van Winkle conveyed excitement about XRP’s future, telling followers, “XRP IS READY TO FLY. NO MORE HOLDING IT BACK! NO MORE PRICE SUPPRESSION! THE LAWSUIT IS DONE!!”
The unexpected price surge following the court’s decision led to significant market reactions, notably liquidating over $5.4 million in short positions, which was 40% more than the long positions in the same timeframe, according to data from CoinGlass. This demonstrates the profound impact of legal and regulatory developments on cryptocurrency markets and investor strategies.
