XRP surges 26% as Ripple Labs wins SEC case
2 min readRipple’s XRP token saw a significant increase of 26% as a federal judge in New York approaches the conclusion of a three-year-long legal case. This case involves Ripple Labs and allegations of securities violations. The company’s executives have regarded this outcome as a significant “victory” for the entire cryptocurrency sector.
On August 7th, the judge’s decision imposed a civil fine of $125 million on Ripple Labs. Additionally, the company was categorically prohibited from violating U.S. securities laws going forward. This measure is part of a lawsuit initiated by the Securities and Exchange Commission (SEC). According to reports, this resolution seems to indicate that the legal battle between Ripple and the SEC is reaching its decisive moments, after the regulator initiated the process in December 2020.
With this news, XRP saw its price rise to $0.63. As a result, the token recovered most of the losses it suffered during the recent cryptocurrency market turbulence since August 5th.
XRP’s appreciation offset the $125 million fine
Brad Garlinghouse, CEO of Ripple Labs, stated in a post on platform X that the recent legal outcome represents a significant victory for Ripple, the cryptocurrency industry, and the principle of legality. He emphasized that the challenges imposed by the SEC on the XRP community were finally overcome.
Chris Larsen, co-founder of Ripple Labs, also expressed relief on the same platform. He highlighted that the end of the SEC’s intense regulatory pressure on Ripple might signal the end of the hostilities faced by the crypto sector under the current administration.
However, the attention of other crypto industry analysts shifted to the impact of this decision on XRP prices. Fred Rispoli, a cryptocurrency lawyer and founder of Hodl Law, shared his surprise at the $125 million fine imposed. Rispoli noted that Ripple quickly offset this amount with the appreciation of XRP in the minutes following the announcement.
Bad luck for those betting on XRP’s decline
The recent XRP surge surprised many futures traders. As a result, 40% more short positions were eliminated than long positions in just four hours. This unexpected shift led to the liquidation of more than $5.4 million in short positions, according to data from CoinGlass. If this upward trend continues and the price reaches $0.65, there is a possibility that another $20 million in short positions will be liquidated.
