XRP, the fourth largest cryptocurrency by market capitalization, surged almost 14% in an instant after the U.S. Securities and Exchange Commission (SEC) decided to drop its appeal in the ongoing lawsuit against Ripple. This unexpected development has ignited bullish momentum for the XRP price.

The announcement shared on X by Ripple CEO Brad Garlinghouse, reads, "This is it—the moment we’ve been waiting for. The SEC will drop its appeal—a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let's build."

Following the announcement, XRP saw an immediate price jump, skyrocketing to highs of $2.59, having reached lows of $2.26 in the early Wednesday session. At the time of writing, XRP was up 8% hourly and 13% on the 24-hour basis, making a 14% rise weekly.

The SEC’s decision to abandon its appeal marks a significant win for Ripple and its community. The long-running legal battle has been a major source of uncertainty for XRP, and this latest move provides a clearer path for its future.

The announcement follows earlier speculation in the crypto space, with Fox Business correspondent Eleanor Terrett hinting in a March 12 tweet that the Ripple-SEC lawsuit case was wrapping up and could be over soon.

XRP community reacts: What's next?

The news regarding the SEC dropping its appeal elicited jubilation in the XRP community. Ripple Chief Legal Officer Stuart Alderoty wrote, "Today, Ripple moves forward—stronger than ever. This landmark case set a precedent for the domestic crypto industry. With the SEC dropping its appeal, Ripple is now in the driver's seat, and we’ll evaluate how best to pursue our cross-appeal. Regardless, today is a day to celebrate this victory."

Given that the specific details about the dismissal are yet to appear, legal expert and XRP enthusiast Jeremy Hogan speculates on potential scenarios and possibilities. First, the SEC has dropped its appeal, but it is not yet apparent if Ripple agreed to the same, Hogan noted.

Thus, there are four possibilities left, according to Hogan: Ripple continues its appeal and gets a ruling from an appellate court on whether investment contracts require contracts; second, Ripple agrees to drop its appeal, jurisdiction returns to the trial court and the parties attempt to amend the judgment; third, Ripple agrees to drop its appeal, and the parties agree with them without trying to amend the judgment; and lastly, Ripple just pays the $125 million fine and moves on.