According to The Block, as Ripple's case with the U.S. Securities and Exchange Commission (SEC) enters its final stages and there is no indication that XRP will be classified as a security, the price of XRP has risen by 26%.
The price of XRP jumped 26% as a New York federal judge advanced the end of a three-year securities lawsuit against Ripple Labs, with Ripple executives hailing it as a "win" for the industry.
On Aug. 7, a judge ordered Ripple Labs to pay a $125 million civil penalty and said the company was “permanently enjoined and barred” from violating U.S. securities laws as part of a case brought by the SEC.
As Cointelegraph reported, the ruling appears to push Ripple’s case against the SEC into its final stages, as the regulator initially filed the lawsuit in December 2020.
Following the news, XRP prices rose 26% to $0.63, largely offsetting losses from a broader cryptocurrency sell-off since Aug. 5, according to CoinMarketCap.
Currently, XRP is trading at $0.59.
Ripple Labs CEO Brad Garlinghouse posted on X: "This is a victory for Ripple, the industry, and the rule of law. The SEC's resistance to the entire XRP community has been eliminated."
Chris Larsen, co-founder of Ripple Labs, added: “The SEC’s crazy campaign against us is finally over. Hopefully this will end this administration’s war on crypto.”
However, other cryptocurrency commentators are more concerned about the movement of XRP’s price.
Fred Rispoli, a cryptocurrency attorney and founder of Hodl Law, wrote on X: “Overall, this is a huge win for Ripple. While I am surprised by the $125 million fine, Ripple has made more than that from the increase in XRP price in the last 5 minutes alone.”
Crypto researcher Ripple Van Winkle told his 108,400 X followers: "XRP is ready to take off! No more restrictions! No more price suppression! This lawsuit is over!!"
This price surge resulted in 40% more liquidations of long positions than short positions.
The price increase resulted in the liquidation of $5.4 million worth of short positions, according to CoinGlass.
If the trend continues and the price reaches $0.65, another $20 million in short positions could be liquidated.
