XRP, the world’s third-largest cryptocurrency by market value, climbed past $3 on Thursday for the first time in over a week. The token gained more than 4.5% in the past 24 hours, breaking through a key psychological level as speculation mounted that the US Securities and Exchange Commission (SEC) may end its long-running legal battle against Ripple Labs.
The price jump comes amid renewed investor confidence, boosted by expectations of regulatory clarity and a possible dismissal of the SEC’s appeal in the case.
Legal Expert Predicts Dismissal Before Deadline
Lawyer Bill Morgan suggested in a post on X that the SEC could vote to dismiss its appeal before the 15 August deadline to update the appeal court on its status.
“Dismissal of the appeals may happen, and is more likely to happen than not, before the 15 August deadline to report to the appeal court on the status of the appeals,” Morgan wrote.
He noted that Ripple had already agreed to dismiss its appeal, and both parties had previously signed a conditional settlement agreement that could have ended the dispute. However, the conditions were not met at the time.
While it is possible for the SEC and Ripple to ask the court for more time, Morgan believes this “seems unlikely.”
Possible End to Nearly Five-Year Legal Fight
The SEC and Ripple must submit a joint report to the US Court of Appeals for the Second Circuit by 15 August. A dismissal of the appeal could lead to a settlement, pending court approval, and bring an end to the high-profile case. If approved, the matter would return to the district court for final authorisation.
The legal fight began in December 2020 when the SEC accused Ripple of raising $1.3 billion through unregistered XRP securities sales. In July 2023, Judge Analisa Torres ruled that XRP was not a security when sold to retail buyers, but classified it as one when sold to institutional investors.Ripple was ordered to pay a $125 million fine in August 2024. On 12 June, Ripple and the SEC filed a joint motion to release the $125 million held in escrow, with $50 million to be transferred to the SEC and the remaining $75 million returned to Ripple, pending court approval.
