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The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have filed a joint motion to dissolve the injunction in their long-running legal dispute and modify the $125 million penalty settlement. This marks another attempt to bring the case to a close, following an earlier denial by Judge Analisa Torres on procedural grounds.
Details of the Joint Motion:
* Dissolving the Injunction: The motion seeks to dissolve the injunction that was placed on Ripple, which had been seen as a significant hurdle for the company, particularly regarding its ability to sell XRP.
* Modifying the Penalty: The original penalty imposed on Ripple was $125 million for institutional sales of XRP, which the court deemed unregistered securities offerings. The new proposal suggests that Ripple would pay $50 million to the SEC, with the remaining $75 million of the $125 million currently held in escrow being returned to Ripple.
* Avoiding Further Litigation: Both parties have indicated that this joint motion is an effort to avoid further appeals and protracted legal battles. This reflects a shared desire to resolve the matter and reduce the expenditure of resources for both Ripple and the judicial system.
* “Exceptional Circumstances”: The motion cites “exceptional circumstances” as the grounds for revisiting the final judgment, including a settlement, a shift in the SEC’s crypto policy, and the desire to avoid further litigation.
Background and Previous Developments:
* Initial Lawsuit: The SEC sued Ripple in December 2020, alleging that the company conducted unregistered securities offerings through institutional sales of XRP.
* Partial Victory for Ripple: In July 2023, Judge Analisa Torres ruled that secondary sales of XRP on public exchanges did not constitute securities, a partial victory for Ripple and the broader crypto industry. However, she also determined that Ripple’s institutional sales of XRP did violate securities regulations.
* Original Penalty: In August 2024, Judge Torres ordered Ripple to pay a $125 million civil penalty.
* Previous Denial of Joint Motion: In May 2025, Judge Torres denied an earlier joint request by the SEC and Ripple for an “indicative ruling” that would have advanced a similar settlement. She cited procedural issues, emphasizing the need for a compelling case to justify withdrawing her earlier ruling.
Current Status and Outlook:
The current joint motion is a renewed attempt to get the settlement approved, addressing the procedural concerns raised by Judge Torres in her previous denial. If approved, this settlement would be a significant step towards concluding one of the most closely watched legal cases in the cryptocurrency space, potentially setting a precedent for future crypto-related regulatory disputes.

Video courtesy of First Bank of Nigeria

Video courtesy of First Bank of Nigeria