Key Takeaways
- Ripple Labs and SEC drop lawsuit against each other on Thursday.
- The previous verdict will now be treated as final. XRP price jumped 10%.
- Investors are now gauging if XRP can hold the level or consolidate in the future.
Following the conclusion of a long legal struggle between Ripple Labs and the Securities and Exchange Commission (SEC), the price of Ripple (XRP) has increased by more than 10% in the last day.
One of the most well-known legal disputes in the history of the cryptocurrency markets came to an end on August 7th when attorneys for the SEC and Ripple Labs jointly decided to withdraw their appeals.
The market capitalization of XRP surged to $197.15 billion in the past 24 hours
Ripple VS XRP: What Had Happened?
The commencement of the legal battle happened in 2020 when the SEC had accused Ripple Labs, its CEO Brad Garlinghouse and co-founder Chris Larsen of trading unregistered securities offering by selling XRP tokens worth over $1.3 billion. The SEC had further argued that Ripple should have registered XRP trades with the SEC, making them trade similar to securities.
However, Ripple had argued in its defence that XRP was a digital currency, just like Bitcoin and Ethereum and could not be considered as a security. The case had garnered attention from both the crypto markets and financial diaspora at that time. The legal battle between the Ripple labs and the SEC was seen a precedent to how the U.S. would formulate laws regarding cryptocurrency in the future.
Judge Analisa Torres’ Previous Verdict Now Final
In the Ripple v. SEC case, Judge Analisa Torres rendered a mixed verdict in 2023. With both the parties dropping their appeals, the previous decision has now been taken as the final verdict. In the 2023 ruling, Judge Torres had stated that the court would consider Ripple selling XRP worth millions of dollar to big instuitutions as “illegal sales of unregistered securities“. However, the court had ruled that the blind bid sales of XRP, which were made to regular persons on exchanges without their knowledge were lawful and not securities transactions.
XRP Price Now At $3.33
The conclusion of the Ripple vs. SEC lawsuit has seen XRP price rise to $3.33, up 10% in the last 24 hours. With the current rise, market participants are now wondering if XRP will hold the price and rise or consolidate at the current levels.
As told to Timescrypto.com by Bitunix analyst Dean Chen, “the $3.3-$3.4 range could present selling pressure for XRP, and it will be crucial to see if the price can consolidate and hold this level”.
They add, “Overall, the end of the lawsuit provides a major structural tailwind for XRP, leading to a significant rebound in market confidence”. At the press time, the RSI value of XRP stands at 162.83, signalling the approach of an overbought territory.
