XRP Price Soars 11.47% After SEC Withdraws Appeal Against Ruling Favoring Ripple Labs

XRP experienced an 11.47% surge following the SEC's withdrawal of its appeal against a key ruling in the Ripple Labs case.

After the U.S. Securities and Exchange Commission (SEC) pulled out of its appeal against a key ruling in the Ripple Labs case, XRP clocked an 11.47% surge.

However, the token has since shed some of those gains and is currently trading below its all-time high of $3.55 as legal uncertainties and market analysis continue to play out.

On March 19, the SEC pulled out of its appeal against Judge Analisa Torres’ ruling on programmatic sales of XRP, a move that immediately pushed up the token’s price.

But now, the focus is shifting to Ripple’s cross-appeal and the SEC’s formal withdrawal process.

The appeal withdrawal lessens uncertainty around XRP’s classification in blind trades on exchanges, but broader regulatory clarity from the SEC remains crucial.

Judge Torres’ Final Judgment, which includes a $125 million penalty and restrictions on institutional XRP sales, still poses challenges for Ripple’s US expansion.

Meanwhile, Ripple’s cross-appeal aims to clarify the definition of an “investment contract,” which could pave the way for a settlement that would remove restrictions on institutional XRP sales and enable partnerships with US financial institutions.

The SEC’s decision to pull out of its appeal has also brought XRP-spot ETFs back into the spotlight. With the SEC’s appeal officially withdrawn, the stage could be set for ETF approvals, which would likely attract significant institutional demand, much like BTC-spot ETFs did for Bitcoin.

For the SEC to approve any XRP ETFs, the agency must first formally announce the withdrawal of its appeal. This announcement is expected to follow a closed-door meeting of the SEC’s commissioners.

Former Fox Business journalist Eleanor Terret noted that announcements of this nature often come after a delay. A previous report stated that the SEC had planned to announce its decision on Monday, but the meeting was postponed until Tuesday.

In other developments, XRP declined by 4.43% on Monday, partially reversing the previous day’s gains as traders booked profits amid uncertainty over Ripple’s cross-appeal of a U.S. judge’s ruling that largely favored the token.