Crypto Prices Little Changed, XRP Surges

The latest price moves in crypto markets in context for Aug. 8, 2024.

Good morning. Bitcoin was little changed during the European morning, trading just above $57,000, 0.2% higher than 24 hours ago. The broader digital asset market, as measured by the CoinDesk 20 Index (CD20), is similarly sedate, sitting 0.6% higher. One stand-out is XRP, which jumped nearly 20% after a judge reached a milestone ruling in the Ripple's long-running legal case with the SEC. On Wednesday, a federal judge ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future securities law violations. Although the case is said to have reached its end, the SEC is expected to appeal the ruling – likely extending legal matters.

A federal judge on Wednesday ordered ordered Ripple to pay $125 million in civil penalties, reaching a milestone in the U.S. Securities and Exchange Commission’s (SEC) long-running case against the digital payments company.

The judge also barred Ripple from committing future securities law violations, largely as requested by the SEC. The regulator had sought $1.3 billion in penalties from Ripple and a permanent injunction against future securities law violations.

"We are pleased that the court has largely sided with Ripple on the key legal issues in this case," a Ripple spokesperson told CoinDesk in an email. "The decision creates a clear legal precedent that will help shape the future of crypto in the United States."

The SEC declined to comment on the ruling.

The case began in December 2020, when the SEC filed a lawsuit against Ripple, alleging that the company had raised over $1.3 billion through an unregistered digital asset securities offering. The SEC had argued that seven years prior, when Ripple began offering XRP, it should have been registered with the regulator.

The case centered on whether XRP is an investment contract, which would make it a security under U.S. law. If so, then Ripple would have had to register the offering with the SEC. Both parties filed motions for summary judgment earlier this year, arguing that there were no genuine disputes over any material facts and that they were entitled to judgment as a matter of law.

"The court's decision is a significant development in the crypto industry and will likely have a lasting impact on how digital assets are regulated in the United States," the Ripple spokesperson added. "We are confident that this decision will ultimately help to create a clearer and more efficient regulatory framework for crypto in the U.S."

The judge's ruling largely aligns with XRP holders’ arguments in the case, known as the "friends of the court" briefs, which had pushed for the court to rule that XRP is not a security. Several XRP holders had also filed a motion to intervene in the case, which was denied by the judge in March 2023.

Now that the judge has made a ruling on the matter of whether XRP is a security, the case is expected to move quickly. The next steps will likely include the SEC filing an appeal, which would further delay the conclusion of the case.