XRP prices climbed to £1.91 ($2.46) per token as Ripple Labs agrees to settle SEC lawsuit

Ripple Labs agreed to withdraw its cross-appeal against the SEC to conclude its case with the agency.

Shares of (NYSE:SE ) and (NASDAQ:COIN ) advanced sharply on Wednesday as investors reacted to reports that the US president is pushing for a swift approval of a pro-crypto agenda, including a potential move by the powerful banking regulator to allow major banks to hold crypto.

According to an internal administration memo, President Donald Trump has urged officials to prioritize the approval of a bipartisan bill that would create a framework for the use of digital assets by major banks, an initiative that has already secured support in the Senate.

The memo, which was viewed by the news outlet, also directs the Treasury Department to quickly finalize the President’s Working Group recommendations on stablecoins. It further calls for swift action by the Securities and Exchange Commission (SEC) to resolve pending cases, hinting at a possible settlement of the SEC’s case against Chinese entrepreneur Justin Sun, who is an advisor for a Trump-supported cryptocurrency project.

The report comes after the SEC dropped its appeal of a lower court ruling that recognized the bulk of XRP sales by Ripple did not constitute securities transactions.

"I am pleased to report that the SEC has dropped its appeal of the court decision in the case, and we are working to quickly resolve the remaining cases," President Trump wrote in his memo to administration officials.

The president’s agenda includes a bipartisan bill that would create a framework for the use of digital assets by major banks and other financial institutions.

"I urge officials to prioritize completing this legislation and having it enacted into law by the fall," the memo stated.

The memo also includes a directive to the Treasury Department to finalize the recommendations of the President’s Working Group on stablecoins, which are pegged to the dollar or another asset to maintain price stability.

"Stablecoins can play an important role in our financial system, and I urge officials to quickly finalize recommendations for their use and regulation," the president wrote in his memo.

The report marks the latest development in the SEC’s cases against cryptocurrency firms. Earlier this year, the agency dropped its cases against crypto exchange Coinbase (NASDAQ:) and several other firms.

The agency had appealed a lower court ruling that recognized the bulk of XRP sales by Ripple did not constitute securities transactions. The lower court had also blocked the SEC from imposing a broad injunction on Ripple’s crypto activities.

However, the appeals court vacated the lower court’s ruling on the injunction and remanded the case to the lower court for further proceedings.

The SEC is expected to ask the lower court to lift the injunction and approve a settlement with Ripple, while Ripple will ask the appeals court to uphold its ruling on the XRP sales.

The development is significant for Ripple, which has been battling the SEC in court for years over the alleged sale of unregistered securities.

"A settlement requires approval by the Commission and the court, and is subject to usual court processes and the drafting of final documents," Ripple's chief legal officer, Stuart Alderoty, said in an X post.

"There is no admission of wrongdoing."

Earlier this year, the SEC lost a major case when a federal judge ruled that the agency failed to adequately demonstrate that XRP, the cryptocurrency sold by Ripple Labs, should be classified as a security.

The ruling, which was part of a broader case that saw the SEC sue Ripple for allegedly selling XRP without proper registration, tipped the scales in favor of the cryptocurrency industry.

The cryptocurrency sector has faced heightened scrutiny from the SEC in recent years, with the agency launching several cases against cryptocurrency firms and executives.

The cases have been closely watched by the industry, which is hoping for greater clarity on the regulatory landscape for cryptocurrencies in the US.