XRP, the world’s third-largest cryptocurrency by market cap, rose past $3 for the first time in over a week amid speculation that the US Securities and Exchange Commission (SEC) may drop its long-standing case against Ripple Labs.

The XRP (XRP) token recovered above the $3 psychological mark on Thursday after rising more than 4.5% in 24 hours, Cointelegraph data showed.

Investor confidence was buoyed by regulatory clarity and growing expectations of a dismissal of the SEC’s appeal.

A recent post from lawyer Bill Morgan on X predicted that the SEC may vote to dismiss the appeal before the Aug. 15 deadline.

“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 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 case. However, conditions were not met at the time.

Still, the parties could request an extension from the court, although Morgan said this “seems unlikely.”

The SEC and Ripple are due to file a joint report with the US Court of Appeals for the Second Circuit by Aug. 15. It could lead to the appeal’s dismissal and potentially finalize the settlement, depending on court approval, concluding the nearly five-year legal dispute.

If approved, the case will be reopened in the district court for final authorization.

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SEC vs Ripple Labs: the longest-standing legal battle in crypto history

Ongoing since December 2020,  the SEC’s lawsuit against Ripple Labs marks the most high-profile legal dispute in crypto history. The regulatory agency sued Ripple, alleging the firm raised $1.3 billion through unregistered XRP securities sales.

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In July 2023, Judge Analisa Torres ruled that XRP was not a security in retail sales, but constituted one when sold to institutional investors, and imposed a $125 million fine on Ripple in August 2024.

On June 12, Ripple and the SEC filed a joint motion to release the $125 million held in escrow accounts to pay for the settlement costs ordered by the court, with $50 million transferred to the SEC and the remaining $75 million transferred back to Ripple, pending court approval.

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