XRP surged past the $3 mark for the first time in over a week, driven by mounting optimism that the U.S. Securities and Exchange Commission (SEC) may soon dismiss its appeal against Ripple Labs. The token climbed over 4.5% in 24 hours to hit $3.04 on Thursday, according to data from Cointelegraph. The rebound came amid growing speculation that a resolution to the years-long legal battle between the SEC and Ripple is approaching. Bill Morgan Predicts Appeal Dismissal Investor sentiment was further bolstered by legal commentary from Bill Morgan, an attorney closely following the case. Posting on X, Morgan suggested that the SEC is likely to drop its appeal before the August 15 deadline set by the U.S. Court of Appeals for the Second Circuit. “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,” he said. Morgan pointed out that Ripple had already agreed to dismiss its own appeal and that both sides had previously signed a conditional settlement agreement. Although the terms of that agreement were not satisfied at the time, the groundwork remains for a conclusion if court conditions are met. While the parties could request an extension from the court, Morgan believes this is unlikely. Legal Milestone Could End Years-Long Battle The upcoming joint report from Ripple and the SEC to the Second Circuit could mark a critical turning point. If the appeal is dismissed and the court grants approval, the case may be finalized and returned to the district court for formal settlement authorization. That would effectively bring an end to one of the longest-running legal battles in crypto history. SEC vs Ripple: A Pivotal Case in Crypto Regulation The SEC originally filed its lawsuit against Ripple in December 2020, accusing the company of raising $1.3 billion through unregistered securities sales via XRP. The case has since become a central issue in debates over crypto regulation. In July 2023, Judge Analisa Torres ruled that XRP does not constitute a security when sold to retail investors, though it is a security in institutional sales. That ruling marked a partial win for Ripple but also resulted in a $125 million fine levied in August 2024. Settlement Efforts Underway Efforts to resolve the dispute have continued. On June 12, Ripple and the SEC filed a joint motion to release the $125 million held in escrow for settlement purposes. The proposed split would allocate $50 million to the SEC and return $75 million to Ripple, pending court approval. If accepted, the payment would likely close the case—ending nearly five years of legal friction that has weighed heavily on XRP’s price and investor confidence. Broader Market Implications The outcome of this case could have far-reaching consequences beyond Ripple. Many in the crypto industry view it as a precedent-setting event that could clarify how digital assets are regulated in the United States. A favorable resolution for Ripple may also encourage other crypto firms to challenge the SEC’s regulatory stance.
