On Thursday, the U.S. Securities and Exchange Commission (SEC) dropped securities-violations charges against key executives of fintech company Ripple, causing XRP to record its largest daily percentage rise in three months.
As per the filing, the SEC agreed to dismiss the allegations against Chris Larsen, co-founder of Ripple, and chief executive Brad Garlinghouse. XRP, the fifth-largest digital asset in the world, increased 6.55% to 52 cents at press time, reaching a high of 53 cents before retreating to 51 cents, as per the data.
Months prior, Ripple marked a significant win when the Southern District of New York ruled that Ripple’s offering and sale of XRP on digital asset exchanges did not qualify as offers and sales of investment contracts, contrary to what the SEC had claimed.
The SEC charged Ripple Labs, a company closely associated with XRP, with breaking securities laws almost three years ago and said it raised $1.3 billion by selling XRP to investors. XRP continued to be under pressure from legal issues despite the overall market was increasing.