Cryptocurrencies Gain Amid Ripple’s Legal Setback with SEC

Major cryptocurrencies saw gains on Thursday after Ripple Labs Inc. was ordered to pay a $125 million penalty, a result the company described as a victory against the US Securities and Exchange Commission (SEC).

Bitcoin rose by as much as 4.5%, reaching over $57,600, while Ether, the second-largest cryptocurrency, increased by nearly 5%. Despite these gains, both tokens remain below their levels from a week ago, following a significant market drop on Monday, the steepest decline since the collapse of FTX in 2022.

The market’s recent volatility reflects broader concerns about the global economic outlook, rising geopolitical tensions in the Middle East, and scepticism over the long-term potential of artificial intelligence investments. “Markets remain nervous after the events earlier this week,” said Benjamin Celermajer, co-chief investment officer at Magnet Capital. He added that if fears subside, some may view the recent selloff as an overreaction.

Cryptocurrencies initially rebounded on Tuesday but failed to sustain momentum. As of 11:03 a.m. in Singapore on Thursday, Bitcoin was trading at $57,449 and Ether at $2,457.

The SEC sued Ripple in 2020, alleging the company raised funds by selling the XRP token without registering it as a security. On Wednesday, a federal judge ruled that Ripple must pay a $125 million civil penalty, a fraction of the nearly $2 billion the SEC sought. XRP responded positively, surging as much as 25% following the ruling.