Amid a crucial legal battle for the cryptocurrency industry, a digital asset is leading the recent rally.

The cryptocurrency in question, XRP, is backed by the company Ripple, which is rumored to be on the verge of reaching a settlement with US regulators.

Over the past week, XRP has recorded an impressive rise of about 40%, increasing its value to approximately $0.60. In comparison, BTC rose by around 12% during the same period. This week’s rise in cryptocurrencies is partly due to the expectation that Donald Trump, if victorious in the US presidential elections, would adopt a more favorable stance towards the sector.

In 2020, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, alleging that the firm violated its regulations by raising funds through the sale of its digital token without registering it as a security. The case has garnered significant attention due to its potential implications for the SEC’s jurisdiction. In a development seen by many as a setback for the institution, a US District Judge ruled last July that XRP’s sales to retail investors on exchanges did not constitute investment contracts.

Speculation has been fueled by a “closed meeting” scheduled on the SEC’s website for July 18, as seen in posts on the social media platform X.

Zaheer Ebtikar, founder of the crypto fund Split Capital, stated, “Investors and traders are waiting for a resolution regarding the status of XRP tokens. The whole issue with XRP hinges on what the regulations will be.”

In a recent filing, Ripple Labs revealed a $1 million donation to a new political action committee aimed at unseating crypto-averse Senator Elizabeth Warren and supporting John Deaton as the next senator from Massachusetts.

Note: This is not investment advice