XRP Price Skyrockets Over 26% After the New York Court Brought the Ripple vs SEC Case to a Near Close

At the press time, the token is up 20%, trading at $0.6191, according to data from CoinMarketCap.

The price of XRP has seen a massive 26% increase as the New York court brought the highly anticipated Ripple vs SEC case to a close. At press time, the token experiences a 20% gain, trading at $0.6191, based on data from CoinMarketCap.

In a case filed by the Securities and Exchange Commission, a federal judge ruled on August 7 that Ripple Labs was “permanently restrained and enjoined” from breaking US securities laws and ordered the company to pay a $125 million civil penalty.

This amount is a small portion of what US regulators had demanded in a protracted legal battle with the cryptocurrency startup.

A federal judge ordered Ripple Labs on Wednesday to pay a $125 million civil penalty for breaking US securities rules, putting an end to a three-year legal struggle over whether XRP is a security or not.

This penalty is less than the $1.3 billion that the Securities and Exchange Commission had requested for breaking securities rules in a case that began in December 2020.

What was the Ripple vs SEC battle?

The SEC filed a lawsuit against Ripple Labs in 2020, alleging that the company violated the law by raising funds through the sale of the digital token without first registering it as a security, leading to the order. The case garnered significant attention owing to its potential implications for the SEC's authority to regulate cryptocurrencies.

According to Bloomberg, Ripple stated that it should not be required to pay more than $10 million in fines. However, the agency had requested penalties totaling nearly $2 billion in the case.

Judge Analisa Torres of the US District Court noted that there were no claims of fraud in the case.

In a post on X, Ripple CEO Brad Garlinghouse noted that the court “recognized that they had overplayed their hand” by reducing the SEC's demand by roughly 94%. He also declared that “the SEC’s headwinds against the whole of the XRP community are gone”. At the end, he hailed it as a “victory for Ripple, the industry, and the rule of law.”

The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.

This is a victory for Ripple, the industry and the rule of law. The SEC’s…

— Brad Garlinghouse (@bgarlinghouse) August 7, 2024

Will XRP price rise after this?

In the past, XRP has seen extend bearish trades due to lack of bullish signs for the token. However, with this victory it is likely that investors will approach and trade the coin with more optimism and confidence.

With a $4.8 billion 24-hour trading volume, the price of XRP has seen increased trading activity. This has also been supported by optimistic sentiment and a Fear-Greed Index of 61, which indicates a greed-driven market environment.

Technical signs point to a promising future if major support and resistance levels are maintained by XRP. Additionally, forecasts for the price of XRP indicate that it will likely trade between $1.4 and $1.6 in 2024 and between $1.8 and $3 in 2025. This suggests market optimism and the possibility of significant growth fueled by advantageous legal decisions and market dynamics.

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