XRP jumped on Thursday as a long-running dispute between Ripple, the payment solutions company linked to the token, and the US Securities and Exchange Commission (SEC) drew to a close.
The SEC and defendants including Ripple Labs, Inc. and CEO Brad Garlinghouse jointly agreed to dismiss their respective appeals in a case that revolves around whether XRP can be defined as security, according to a court filing posted on X by Ripple's Chief Legal Officer Stuard Alderoty.
Back to business
The company then reposted Alderoty's message:
"Following the Commission's vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals. The end…and now back to business."
XRP is a digital asset created by Ripple Labs in 2012 and was first traded in 2013. It was designed for fast and low-cost cross-border payments. In 2020, the SEC sued Ripple after it raised over $1.3 billion by selling XRP in an unregistered securities offering.
11% surge
XRP surged in particular between 21:00 and 22:00 UTC and has advanced more than 11% since Wednesday, trading at $3.3356 at 07:20 on Friday morning. In doing so, it recovered some ground lost since its 17 July all-time high when it peaked at $3.5492.
Institutional inflows and reports of high-volume purchases of XRP in recent days may also have contributed to the rally.
Institutional potential
The coin is a strong candidate to join Bitcoin (BTC) and Ether (ETH) among the cryptocurrencies that are starting to receive increasing amounts of investments through ETFs (exchange-traded funds). In the US, the SEC has a regulatory role in approving ETFs.
It has been a positive week for Ripple, which also announced it was acquiring Rail Financial, a stablecoin infrastructure platform.
