XRP Surge: The cryptocurrency world was abuzz as XRP, the third-largest digital currency by market capitalization, soared past the $3 mark. This achievement marks the first time in over a week that XRP has crossed this psychological threshold. The surge is largely attributed to the rising speculation that the US Securities and Exchange Commission (SEC) might dismiss its long-standing case against Ripple Labs.
According to Cointelegraph data, the XRP surge saw the token climb over 4.5% within a 24-hour period. This increase is a testament to the growing investor confidence fueled by regulatory clarity and expectations of a potential dismissal of the SEC’s appeal.
Ripple SEC Case: A Potential Dismissal
Legal expert Bill Morgan recently posted on X, suggesting that the SEC could vote to dismiss its appeal before the August 15 deadline. “Dismissal of the appeal is more likely to happen than not,” he stated. Morgan highlighted that Ripple had already agreed to dismiss its own appeal, and both parties had previously signed a conditional settlement agreement that would have ended the case. However, the conditions were unmet at the time.
While there is the possibility of requesting an extension from the court, Morgan believes this is “unlikely.” Both the SEC and Ripple are required to file a joint report with the US Court of Appeals for the Second Circuit by August 15. This report could lead to the appeal’s dismissal and potentially finalize the settlement, pending court approval, effectively concluding the nearly five-year legal dispute.
The Historical SEC vs. Ripple Legal Battle
Commencing in December 2020, the SEC’s lawsuit against Ripple Labs is perhaps the most prominent legal dispute in cryptocurrency history. The agency accused Ripple of raising $1.3 billion through unregistered XRP securities sales. This case has been a focal point in the crypto industry, with implications for regulatory practices.
In July 2023, Judge Analisa Torres ruled that XRP was not considered a security in retail sales but was classified as such when sold to institutional investors. Consequently, Ripple was fined $125 million in August 2024. Subsequently, on June 12, Ripple and the SEC filed a joint motion to release the $125 million held in escrow accounts to cover settlement costs, with $50 million allocated to the SEC and the remaining $75 million returned to Ripple, pending court approval.
The potential dismissal of the SEC’s appeal and the finalization of the settlement could set a significant precedent in the cryptocurrency regulatory landscape. The XRP surge reflects the market’s optimistic outlook towards a resolution of this high-profile case.
As developments unfold, the crypto community eagerly anticipates the outcome, which could significantly impact XRP’s market position and the broader regulatory environment.
