XRP surges beyond US$0.64 after Ripple’s legal victory: Bulls celebrate as momentum builds

The XRP price rose beyond US$0.64, setting a new high for 2024, as Ripple won another lawsuit against the SEC. The judge dismissed the SEC’s request to view Ripple’s legal communications, giving the business a huge advantage in the current litigation. XRP holders reacted positively to the news, increasing the demand for the cryptocurrency.

The SEC and Ripple lawsuits began in December 2020, when the SEC filed a complaint against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen, alleging that they generated more than US$1.3 billion through an unregistered and continuing XRP securities offering. The SEC alleged that XRP is a security, not a currency and that Ripple and its officials violated federal securities rules by selling it without first registering it or receiving an exemption.

Ripple, on the other hand, said that XRP is a digital asset rather than a security and has long been utilized as a means of exchange and a store of value. Ripple also stated that the SEC’s case is an attack on the whole crypto sector, harming the interests of millions of XRP holders who are not involved with Ripple. The litigation has been ongoing for over a year, with both sides participating in discovery, motions, and hearings. If no settlement is reached before then, the matter is likely to go to trial in early 2025.

What was the Latest Development?

The most recent update in the dispute was Judge Sarah Netburn’s decision in favor of Ripple on October 26, 2024. The judge refused the SEC’s attempt to compel Ripple to turn up protected conversations with its attorneys, which the SEC argued were important to the case. The judge determined that Ripple’s legal discussions are protected by the attorney-client privilege and that the SEC failed to demonstrate that Ripple waived this privilege or engaged in selective disclosure.

This decision was a significant victory for Ripple because it stopped the SEC from accessing potentially damaging material that may have undermined Ripple’s argument. It also demonstrated that the court was not persuaded by the SEC’s contention that Ripple had jeopardized its legal communications by raising the fair notice defense, which claims that the SEC did not offer clear and timely clarification on the legal status of XRP.

The verdict was also beneficial to XRP holders, who saw the token’s price rise by more than 10% in the aftermath of the announcement. The XRP price broke over the US$0.64 barrier level, the previous high for 2024, and set a new high of US$0.66. The token also advanced versus Bitcoin (BTC) and Ethereum (ETH), demonstrating its relative strength in the cryptocurrency market.

What are the Implications for XRP?

The ramifications for XRP are encouraging, since the verdict demonstrates that Ripple has a solid case and that the SEC is having difficulty establishing its charges. The verdict also lessens the uncertainties and regulatory risk around XRP, potentially attracting more investors and users to the cryptocurrency. Furthermore, the decision may create a precedent for future crypto-related disputes, as it emphasizes the relevance of the attorney-client privilege and the fair notice defense in the crypto realm.

However, the verdict does not indicate that the dispute is done or that Ripple has won it. The SEC still has more arguments and evidence to submit, and the court may decide differently on other matters. The litigation is a complicated and time-consuming procedure, with no clear resolution. As a result, XRP holders should be careful and aware of the possible volatility and hazards associated with owning the coin.