XRP Soars 26% as Ripple Labs Secures Victory in SEC Lawsuit

The cryptocurrency community was abuzz on August 7 as XRP, the native token of Ripple Labs, saw a dramatic 26% surge in its price. This spike comes as a New York federal judge moved closer to resolving a three-year legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).

The SEC vs. Ripple lawsuit has been a dark cloud over Ripple Labs and the broader cryptocurrency market. The SEC accused Ripple of selling XRP as an unregistered security, a charge that Ripple has vehemently denied.

For nearly three years, the case caused a tough period for XRP. However, as the dust settles on this legal battle, the ripple effects (no pun intended) will be felt across the cryptocurrency industry. 

XRP rallied to $0.63 following the news, recouping much of its recent losses amid a broader crypto downturn. As of the time of publication, XRP is trading at $0.61, up by around 20% in the last 24 hours.

Case Nears End

On August 7, the judge presiding over the case ordered Ripple Labs to pay a $125 million civil penalty. Additionally, the firm was “permanently restrained and enjoined” from violating U.S. securities laws moving forward. While the penalty is huge, Ripple executives and many industry insiders view the ruling as a victory, signaling the end of the SEC’s aggressive stance against the company.

Brad Garlinghouse, Ripple Labs’ CEO, celebrated the ruling. In a post on X, Garlinghouse stated, “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.”

Crypto Community Reacts

The reaction from the broader crypto community was overwhelmingly positive. Fred Rispoli, a crypto lawyer and founder of Hodl Law, commented on X:

“Overall, a HUGE win for Ripple. 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.”

Another prominent voice in the XRP community, researcher Ripple Van Winkle, also celebrated the news with their 108,400 followers.

The market’s reaction was swift, with futures traders scrambling to cover their short positions. In just four hours, the price surge wiped out 40% more short positions than long ones, catching many by surprise.

Adding to the momentum, Brad Garlinghouse made a bold prediction at the Consensus 2024 conference. He forecasted that the SEC would soon approve exchange-traded funds (ETFs) for Ripple (XRP), Solana (SOL), and Cardano (ADA).