The SEC has dropped its case against a crypto firm connected to Trump, according to the CEO.

The U.S. Securities and Exchange Commission (SEC) has officially dropped its long-standing case against Ripple Labs, a cryptocurrency firm with notable ties to former President Donald Trump. Ripple’s CEO, Brad Garlinghouse, announced the development on social media, calling it a “victory” and a “long overdue surrender by the SEC.”

The case, which began in December 2020, accused Ripple of violating securities laws by raising $1.4 billion through the sale of XRP tokens. A landmark ruling in 2023 determined that XRP tokens sold publicly did not constitute securities, though Ripple was fined $125 million for sales to institutional investors. The SEC’s decision to drop its appeal spares Ripple from potentially facing further penalties.

This announcement comes shortly after Garlinghouse attended a White House crypto summit hosted by Trump, who has been vocal about creating a more favorable regulatory environment for digital assets. Ripple’s connections to the Trump administration include a $5 million donation to Trump’s inaugural committee and Garlinghouse’s public support for the former president.

Following the news, XRP’s price surged by over 10%, reflecting renewed investor confidence. Ripple now plans to focus on acquisitions in the blockchain space, signaling a shift in strategy as it moves past this legal battle.