XRP Price Soars 10% as US Securities and Exchange Commission (SEC) Dismisses Case Against Ripple

Leveraging on this, XRP price rose by more than 10% within minutes touching a price of $2.55.

The US Securities and Exchange Commission (SEC) has dismissed its case against Ripple after five years.

The SEC filed a lawsuit against Ripple in December 2020, claiming that the company sold unregistered securities in the form of its cryptocurrency, XRP, to institutional investors.

However, Judge Analisa Torres ruled earlier this year that XRP was not a security.

After the SEC dropped its case, Brad Garlinghouse, the CEO of Ripple, announced on X that the agency’s lawsuit was “doomed from the start.”

Garlinghouse also took aim at SEC Chair Gary Gensler, asserting that the agency never intended to protect investors but rather sought malice against crypto businesses.

According to the Ripple CEO, this decision is crucial for the company’s development and regulation in the cryptocurrency market.

Great news for the broader crypto industry - SEC has dropped its case against Ripple. This case was flawed from the start & doomed to fail. But it’s a good day for the broader industry nonetheless. Judge Torres saw through the SEC’s case - no case should take 5 years to complete. After 17+…

— Brad Garlinghouse (@BradGarlinghouse) September 1, 2023

“The SEC’s case was flawed from the start and doomed to fail. But it’s a good day for the broader industry nonetheless,” Garlinghouse said.

He added that Judge Torres saw through the SEC’s case and no case should take five years to complete. After 17+ hours of trial, the judge saw that the SEC’s case had no merit.

“After 3.5 years of litigation - and 17+ hours of trial - Judge Torres saw that the SEC’s case had no merit and dismissed it entirely,” Garlinghouse said.

He further noted that the SEC had an obligation to complete cases in a timely manner, especially in a rapidly evolving industry like crypto.

According to Garlinghouse, Judge Torres’ ruling is a win for everyone in the crypto industry.

“This case was a distraction and a setback for the industry, and we’re glad to see it finally come to an end.”

Expert Opinion

Analyst Ali Martinez also noted that the recent XRP price rally lacked significant whale accumulation.

Instead, data from Santiment revealed a surge in open interest by $200 million, suggesting a leverage-driven rally.

This indicates that the price surge may be fueled by speculative trading rather than strong institutional buying.

skilled traders can capitalize on rapid price movements, especially when they are driven by a significant event.

With the SEC case now closed, attention may shift to other catalysts that could influence XRP’s price trends.

Future Plans: IPO and Banking Expansion?

Following the case in the SEC, Ripple is now likely to hit the expansion button. Ripple CLO Stuart Alderoty hints that Ripple is now in the driver’s seat.

More so, the XRP company is likely to make an Initial Public Offering (IPO) soon. This would greatly improve XRP value, and probably bring in more institutional investors to the market.

Additionally, the firm is likely to expand its banking partnerships, strengthening its role in the global payment industry.

The company has already established relationships with major financial institutions, and with regulatory uncertainty lifted, it could attract even more partners.