Here is Why XRP’s Price Skyrocketed This Past Week

XRP has experienced a significant surge, rising over 38% this week to reach $0.61, surpassing Bitcoin's more modest 12% increase.

This spike follows positive remarks from Ripple Labs CEO Brad Garlinghouse, who suggested an imminent resolution in the ongoing legal battle with the SEC.

During a recent interview with Bloomberg Television, Garlinghouse refrained from disclosing specifics but expressed confidence in a swift conclusion, citing favorable court rulings. The SEC filed a lawsuit against Ripple Labs in 2020, alleging that the company’s sale of XRP violated securities regulations, a case closely monitored for its potential implications on cryptocurrency policies.

Garlinghouse reflected on a pivotal court decision from last July, which deemed XRP sales to retail investors on exchanges as non-securities, marking a significant legal victory for Ripple and the broader industry.

Speculation has intensified with news of a “closed meeting” scheduled by the SEC for July 18, heightening anticipation among investors for further insights into XRP’s regulatory status. Ripple Labs’ recent $1 million contribution to a political action committee underscores its increased engagement in shaping U.S. regulatory policies affecting digital assets.

The legal dispute between Ripple Labs and the SEC began in December 2020, when the SEC accused Ripple of conducting an unregistered securities offering through XRP sales, totaling $1.3 billion. The case has underscored debates over the classification and regulatory treatment of digital assets within the cryptocurrency sector.

The outcome of this case is expected to have significant implications for the regulation of cryptocurrencies and investor confidence in digital assets moving forward.

Ripple Labs remains optimistic about achieving a favorable resolution, while market participants await further clarity from the SEC regarding XRP’s regulatory status.

At the time of writing, XRP retraced back to $0.58, losing around 5% of its value over the past 24 hours and has a trading volume of $3.87 billion.