Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly refiled a motion seeking to dissolve a court-imposed injunction and approve a revised settlement, potentially ending their protracted legal battle over the classification of XRP as a security. The proposed resolution includes a $50 million civil penalty to be paid to the SEC, with $75 million returned to Ripple, as both parties aim to resolve the years-long dispute.
Joint Request for Resolution
In a June 12 court filing, Ripple and the SEC asked Judge Analisa Torres of the Southern District of New York to issue an indicative ruling on their joint motion to dissolve the injunction issued in the 2024 Final Judgment. If approved, the two parties plan to petition the U.S. Court of Appeals for the Second Circuit to remand the case back to the district court for formal resolution.
This latest effort comes after the court’s May 8 decision denied a similar request, citing a lack of “exceptional circumstances” under Rule 60(b) of the Federal Rules of Civil Procedure. However, both parties now argue that such circumstances exist, warranting reconsideration of the penalty structure and the injunction’s validity.
The amended proposal reflects a mutual desire to avoid further litigation and close this chapter definitively.
Background of the Legal Battle
The case stems from a December 2020 lawsuit filed by the SEC, alleging that Ripple violated federal securities laws by selling XRP as an unregistered security. After years of litigation, the court issued a summary judgment in July 2023, ruling partially in favor of both parties.
A final judgment in August 2024 imposed a $125 million penalty on Ripple and required the company to deposit 111% of that amount into escrow by September 2024. Dissatisfied with aspects of the ruling, the SEC filed an appeal, prompting Ripple to file a cross-appeal.
The ongoing appeals process has fueled uncertainty within the cryptocurrency industry, particularly regarding regulatory clarity for digital assets. This latest motion underscores both parties’ willingness to resolve the matter amicably.
Momentum Toward Settlement
The renewed joint request highlights growing momentum toward a settlement. Both Ripple and the SEC emphasize that “exceptional circumstances” now justify revisiting the penalty structure and dissolving the injunction.
For Ripple, reducing its financial liability to $50 million while reclaiming $75 million aligns with its broader push to resolve regulatory uncertainty and focus on business growth. The company has long argued that XRP is not a security but a utility token, and resolving the case could pave the way for clearer regulatory guidelines.
Meanwhile, the SEC’s willingness to accept a reduced fine signals a potential shift in its enforcement-heavy approach to crypto regulation. Critics have accused the agency of stifling innovation through litigation, and approving this settlement could mark a turning point in how it engages with the industry.
Broader Implications for the Crypto Industry
The outcome of this case carries significant implications for the cryptocurrency sector. A resolution could provide much-needed clarity on the regulatory status of digital assets, influencing how other tokens are classified and regulated.
Moreover, Ripple’s efforts to settle the case reflect a broader trend among blockchain companies seeking to resolve disputes with regulators. As the industry matures, there is increasing pressure to establish frameworks that balance innovation with investor protection.
If the court grants the indicative ruling, the case will return to the district court for final resolution, effectively ending all pending appeals. However, until then, the crypto community remains in limbo, awaiting Judge Torres’ decision.
Final Thoughts
The joint motion by Ripple and the SEC represents a critical step toward resolving one of the most high-profile legal battles in the history of cryptocurrency. By agreeing to a revised penalty structure and seeking to dissolve the injunction, both parties aim to bring closure to a dispute that has spanned nearly four years.
While the court has yet to rule on the renewed request, the willingness of Ripple and the SEC to collaborate on a settlement demonstrates a shared interest in moving forward. For the crypto industry, this case serves as a litmus test for regulatory clarity and the future of digital asset classification.
As the legal saga nears its conclusion, all eyes remain on Judge Torres and the Southern District of New York to determine whether this landmark dispute will finally come to an end.
