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%Cryptocurrency XRP (CRYPTO: $XRP ) is up 3% on reports that Ripple Labs is close to settling its long running legal battle with the U.S. Securities and Exchange Commission (SEC).

Multiple media reports claim that Ripple Labs could soon reach a resolution with the SEC in a

case that has been ongoing since December 2020.

The SEC has accused Ripple Labs of raising $1.3 billion U.S. through unregistered sales of its closely related XRP crypto token.

Ripple’s legal team is reportedly trying to renegotiate a 2023 court ruling by District Judge Analisa Torres of the Southern District of New York.

That decision required Ripple to pay a $125 million U.S. penalty for its institutional XRP sales, which the court deemed unregistered securities offerings.

However, that penalty was far less than the $2 billion U.S. fine sought by the SEC.

The SEC had been in the process of appealing Judge Torres' ruling shortly before former Chair Gary Gensler resigned his position leading the Wall Street regulator.

Judge Torres' ruling was widely viewed as a victory for Ripple Labs when it was issued, because the court also ruled that sales of XRP to retail investors does not constitute securities transactions.

Now that the SEC is under new leadership, its investigations into crypto companies have been pulled back and many of its ongoing lawsuits have been dropped.

Ripple Labs is an American technology company that offers enterprise %Blockchain products on the XRP Ledger.

XRP’s price has risen 10% so far in 2025 to currently trade at $2.31 U.S. per digital token.