XRP has surged more than 10% in just a few hours, spurred by a major development in the long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). This dramatic price movement highlights the cryptocurrency’s sensitivity to regulatory updates, especially those tied to Ripple’s courtroom saga.

Ripple v. SEC Lawsuit Sees Critical Progress

After years of legal back and forth, a significant breakthrough has been achieved in the case between Ripple and the SEC. Notably, the Second Circuit Court has formally approved the Joint Stipulation of Dismissal that both parties had filed earlier this month. Defense attorney James K. Filan confirmed the court’s approval, marking yet another signal that the legal battle may finally be coming to a close.

The case’s roots stretch back to March, when Ripple’s CEO, Brad Garlinghouse, disclosed that both Ripple and the SEC agreed to abandon their respective appeals, concluding with a $50 million settlement. Initial celebrations were tempered by Judge Torres’ initial denial of the requests. But in early August, the joint dismissal was resubmitted and now, with court approval in hand, the finish line seems near.

XRP Reacts with Strong Price Rally

Following the court’s decision, XRP experienced a sharp price surge. The token leaped from below $2.8 earlier in the day to nearly $3.1, in tandem with broader upward movements in the crypto market. This change represents an over 10% gain in just a few hours, signaling renewed investor confidence.

According to some analysts, breaching the $3 level could trigger widespread liquidations for overly leveraged short positions, potentially compounding XRP’s upward momentum. This rally also aligns with broader market optimism fueled by U.S. Federal Reserve Chair Jerome Powell’s recent indication of potential interest rate cuts later in the year.

XRP price chart displaying the sharp rise following the legal update. Source: TradingView

Market Implications and Investor Outlook

XRP’s recent performance demonstrates how regulatory clarity can boost investor sentiment. With the Ripple-SEC case hovering over the asset for years, nearing a resolution provides a breath of fresh air for both XRP and the broader digital asset community.

Related: XRP Price: $12M Max Pain for Bears

While the price surge reflects immediate optimism, market participants will now closely watch how Ripple navigates this post-litigation phase. Regulatory resolution could open doors for broader adoption and renewed listings on major U.S. exchanges, further shaping XRP’s trajectory in the coming months.