XRP Rises 11% as SEC Lawsuit Against Ripple Is Dismissed

XRP rose 11% to $3.35 after the SEC and Ripple Labs settled their long dispute. Stuart Alderoty, Ripple’s chief legal officer, confirmed the resolution on August 8, following a filing the day before to dismiss appeals in the U.S. Court of Appeals for the Second Circuit.

The market reacted quickly, with XRP trading volume spiking nearly 176% in 24 hours. For many investors and institutions, this dismissal removes a major roadblock that has loomed over XRP since 2020.

Case Closure Ends Nearly Five Years of Uncertainty

The lawsuit started in December 2020 when the SEC said Ripple raised $1.3 billion by selling XRP without registering it as a security. Ripple said XRP was not a security, which led to years of court hearings and some decisions along the way.

In July 2023, Judge Analisa Torres delivered a mixed decision: institutional sales of XRP were deemed securities transactions, but sales to retail buyers on public exchanges were not. That partial win set the stage for lengthy appeals, until now.

Under the dismissal agreement:

• The SEC withdrew its appeal of the 2023 retail sales ruling.
• Ripple dropped its cross-appeal on the institutional sales finding.
• Each side will cover its own legal costs.

The settlement also releases $125 million held in escrow since June: $50 million will go to the U.S. Treasury as a penalty, while $75 million returns to Ripple. A permanent injunction still applies to institutional XRP sales.

Market and Industry Implications

XRP’s sharp rise to $3.35 reflects more than simple relief over legal clarity. It marks a resurgence of confidence in the token’s potential within both U.S. and global markets. For years, the unresolved court case discouraged banks, payment processors, and certain exchanges from fully embracing XRP.

With public sales reaffirmed as non-securities, institutional adoption may now move forward at a faster pace. Market observers note that payment providers could become more inclined to consider XRP for cross-border transactions, a utility Ripple has promoted since its inception.

Futures traders were quick to react. Coinglass data shows XRP open interest climbed 7.8% in the week before the case dismissal, indicating expectations of a positive resolution. Options markets also saw a surge in activity, with $28 million in liquidations during the rally.

The token now approaches a key barrier at $3.60, last reached in July. Technical indicators point to a bullish pattern, as XRP closed above both the 7-day SMA ($3.08) and the 30-day EMA ($2.97). However, the RSI at 66 suggests the market is nearing overbought territory.

What This Means for Other Tokens?

The Ripple settlement happens as the SEC seems to be changing how it enforces cryptocurrency rules. Similar changes in cases with Coinbase and Kraken have led some to think the agency is becoming less strict under new chair Paul Atkins.

Should this change be finalized, it has the potential to transform the U.S. regulations governing digital assets by lessening the legal uncertainties that have restrained market development. For XRP, this could prompt exchanges that removed the token earlier to reconsider, which may improve liquidity and availability.

The industry is currently waiting for the SEC’s final settlement terms, expected by August 15. These terms could provide clearer insight into how the regulator intends to handle similar cases going forward.

What to Expect from XRP Now?

While XRP’s rally is notable, its sustainability will depend on market sentiment and broader crypto trends. A break above the $3.60 resistance could pave the way toward the $4 mark, but any reversal in momentum could slow progress.

With the case now dismissed, one of the most prominent crypto legal battles in U.S. history has come to an end, removing a major barrier to XRP’s growth. It highlights how legal decisions can quickly reshape market dynamics for both individual tokens and the broader industry.