preCharge News CRYPTO — XRP surged after Ripple CEO Brad Garlinghouse said the U.S. Securities and Exchange Commission is no longer pursuing its appeal in the case against the payments company.

The price of XRP was last higher by nearly 11% at $2.52.

Ripple XRP market Data | preCharge Swap

“It’s been almost four years and about three months since the SEC originally sued us, certainly a painful journey in lots of ways,” Garlinghouse said at the Digital Assets Summit in New York on Wednesday morning. “I really deeply believed that we were going to be on the right side of the law and on the right side of history.”

“The system just feels broken. That we had to fight this fight for the industry and you had an SEC attacking the industry, particularly the Ripple case,” he continued. “There were no victims, there was no investor loss. They were just not acting in good faith.”

In 2020, the SEC sued Ripple for breaching U.S. securities laws by selling XRP without first registering it with the agency. The company scored a partial victory in 2023 when U.S. District Judge Analisa Torres handed down the decision, which was hailed as a landmark win for the crypto industry. Still, while XRP at that point was not considered a security when sold to retail investors on exchanges, it was considered an unregistered security offering if sold to institutional investors.

The development comes as the SEC moves quickly to reverse much of the damage in the crypto industry left by the previous administration. Last month, the agency ended its enforcement case against Coinbase; closed its investigations into Robinhood’s crypto unit, Uniswap, Gemini and Consensys with no enforcement action; scaled back its crypto enforcement unit; and declared meme coins are not securities.

This week, the newly formed SEC crypto task force will kick off a roundtable series focused on defining the security status of digital assets.

XRP was created by the founders of Ripple in 2012. It is the native token of the open source XRP Ledger, which Ripple uses in its cross-border payments business, about 95% of which takes place outside the U.S. Ripple is the largest holder of XRP coins.

The coin was the biggest beneficiary of the postelection Trump trade. It is up more than 390% since then and up 20% this year.

What’s Next for XRP and Ripple?

Although the SEC backed down, there are still questions about Ripple’s next move. Legal analysts comment that Ripple may still appeal certain of the 2023 decision with regard to institutional sales. Reports also indicate that the company may settle the remaining aspects of the case by paying a $125 million fine, although no official deal has been reached.

Analysts Eye $5 Target as SEC Drops Ripple Lawsuit. Source: Eduardo Sifuentes on TradingView

Another explanation for Ripple currency price is its increasing utilization in cross-border transactions. Ripple’s On-Demand Liquidity (ODL) service continues to expand globally, with nearly 95% of activity happening outside the U.S. The dismissal of the lawsuit removes a major obstacle for Ripple’s business activities, which can result in continued institutional adoption of XRP.

Regulatory Landscape and Market Impact

The SEC’s retreat from multiple high-profile crypto cases suggests a shift in regulatory strategy under the current administration. The newly formed SEC crypto task force is expected to provide further guidance on digital asset classifications, which could create a more predictable environment for crypto companies.

Garlinghouse remains vocal about the need for regulatory clarity in the U.S., arguing that the industry deserves fair treatment. “The SEC’s tactics have hurt investors more than they have protected them,” he said. “Now, we have an opportunity to push for better policies that support responsible innovation.”

XRP’s Market Outlook

Following the legal victory, XRP’s future price behavior will be determined by general sentiment and Ripple’s post-strategic maneuvers. Experts predict that if the good sentiment continues, XRP could go for the next major resistance level at $3.00. Macro fundamentals and broad Ripple market trends, however, will also determine its direction.

In the meantime, the SEC lawsuit resolution on Ripple removes a significant overhang on XRP’s valuation, positioning it for eventual long-term growth potential. Investors will be closely watching Ripple’s next steps and whether regulatory shifts further benefit Ripple XRP news.

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Associated Press, CNBC News, Fox News, and preCharge News contributed to this report.

This is a developing news story. More information will be provided as soon as it becomes available.