XRP price shot up over 26% after the New York court almost concluded the Ripple VS SEC case. At press time, the token is up 20% and is trading at $0.6191, according to data from CoinMarketCap.
In a case filed by the U.S. Securities and Exchange Commission, a federal judge ruled on August 7 that Ripple Labs was “permanently restrained and enjoined” from violating U.S. securities laws and ordered the company to pay a $125 million civil penalty.
This amount is a small fraction of what U.S. regulators had demanded in a lengthy legal battle with the cryptocurrency startup.
What was the Ripple vs. SEC battle about?
The SEC sued Ripple Labs in 2020, claiming the company violated the law by raising money through the sale of the digital token without first registering it as a security. This led to the order being issued. The case has attracted a lot of attention due to its potential impact on the SEC’s ability to regulate cryptocurrencies.
Bloomberg highlights that Ripple claimed it would not have to pay more than $10 million in fines. However, the agency had demanded nearly $2 billion in penalties in this case. Judge Analisa Torres of the US District Court found that there were no allegations of fraud in this case.
In a post on X, Ripple CEO Brad Garlinghouse noted that the court “realized they went too far” by reducing the SEC’s demand by around 94%. He also stated that “the SEC’s backlash against the entire XRP community is over.” In the end, he hailed it as a “victory for Ripple, the industry, and the rule of law.”
The SEC asked for $2 billion, and the court reduced their demand by ~94%, recognizing that they had over-reached. We respect the court’s decision and have the confidence to continue to grow our company.
This is a victory for Ripple, the industry and the rule of law. The SEC…
— Brad Garlinghouse (@bgarlinghouse) 7 August 2024
Will the XRP price increase after this?
In the past, XRP has seen extended bearish trades due to a lack of bullish signs for the token. However, with this win, it is likely that investors will approach and trade the coin with more optimism and confidence.
With a 24-hour trading volume of $4.8 billion, the price of XRP has seen increased trading activity. This was also supported by bullish sentiment and a Fear-Greed Index of 61, indicating a greed-driven market environment.
Technical signs point to a promising future if XRP maintains key support and resistance levels. Furthermore, predictions for XRP’s price suggest that it will likely trade between $1.4 and $1.6 in 2024 and between $1.8 and $3 in 2025. This indicates market optimism and the possibility of significant growth fueled by favorable legal decisions and market dynamics.
