Ripple Jumps 17% After SEC Case Ruling

XRP surged by 17%, leading gains across the crypto market, following a landmark ruling in the long-running case between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). Crypto traders had widely anticipated a settlement in the case throughout July, with XRP receiving significant attention, particularly from South Korean markets, and outperforming other major tokens on several occasions.

On Wednesday, a federal judge ordered Ripple to pay $125 million in civil penalties and imposed an injunction to prevent future securities law violations. Although the case is considered resolved, the SEC is expected to appeal the ruling, likely prolonging legal proceedings.

The market responded positively to the ruling, with XRP prices soaring from 50 cents to 65 cents. Trading volumes jumped from $1.2 billion on Tuesday to $4.2 billion within 24 hours of the ruling. Despite the price surge, there were only $6 million in short liquidations on XRP-tracked futures, indicating that the movement was primarily driven by spot trading.

Open interest in XRP-tracked futures increased by $200 million following the ruling, suggesting new capital entering the market. Data shows that over 60% of traders have taken long positions, anticipating further price increases.

XRP was one of the few major tokens in positive territory during the Asian morning trading hours, while the broader market remained flat. Bitcoin’s lack of movement might indicate the market is starting to factor in a potential Kamala Harris presidency, according to Semir Gabeljic, Director of Capital Formation at Pythagoras Investments. Harris’s recent rise in the polls has been noted as a potential market catalyst, with a new pro-crypto advocacy group, “Crypto for Harris,” aiming to make smart crypto legislation a bipartisan issue.

Other coins also saw gains during the Asian trading session, with TONCoin up 9.7%. TON may be gaining momentum as “The Open Summit,” a TON-themed event at ABS 2024 in Taipei, wraps up. Conversely, Trump-themed PoliFi coins are struggling amid a now highly competitive election. MAGA (TRUMP) is down 12.5% on the day and 44.5% for the month, while Solana’s TREMP is down 6% on the day and 43% for the month. Harris-themed KAMA is trading flat but has risen over 160% in the past month.