The U.S. Securities and Exchange Commission (SEC) has ended its long running lawsuit against Ripple Labs, the company behind the XRP (XRP) cryptocurrency.
The SEC’s lawsuit against Ripple Labs had been ongoing since 2020. Both parties have agreed to walk away from the case and bear their own legal costs.
The SEC had sued Ripple Labs alleging the company violated U.S. securities laws through the sale of XRP, the cryptocurrency closely associated with the company.
XRP rose 5% on news that the lawsuit has been dismissed.
A judge in the case initially ruled against Ripple Labs, stating that the company had violated securities laws in selling XRP to institutional traders and investors.
As a result, Ripple Labs was hit with $125 million U.S. in fines and slapped with a permanent injunction against further violations of the law.
Ripple Labs appealed the judgment and the case was working its way through the appellate court system.
However, U.S. President Donald Trump has installed new, pro-crypto leadership at the SEC and the agency has now agreed to drop the case.
XRP has risen 10% this year to trade at $3.33 U.S. per digital token.
