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 XRPâs value followed the courtâs 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, XRPâs 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, âThis is a victory for Ripple, the industry and the rule of law. The SECâs headwinds against the whole of the XRP community are gone.â Ripple Labs co-founder Chris Larsen also commented on the outcome, saying, âThe SECâs unhinged campaign against us is finally over. Letâs all hope this ends this Administrationâs war on crypto.â
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, âAlthough Iâm surprised at the $125M hit, Ripple more than made that just on the price move in XRP in the last 5 minutes.â Meanwhile, crypto researcher Ripple Van Winkle conveyed excitement about XRPâs future, telling followers, âXRP IS READY TO FLY. NO MORE HOLDING IT BACK! NO MORE PRICE SUPPRESSION! THE LAWSUIT IS DONE!!â
The unexpected price surge following the courtâs 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.