EddieJayonCrypto

 13 Jun 25

tl;dr

The SEC and Ripple have jointly requested a federal judge to dissolve a court injunction and approve a revised $50 million penalty settlement to end their multi-year legal dispute over XRP. The proposal includes Ripple paying $50 million to the SEC, with $75 million returned to Ripple. This follows ...

The U.S. Securities and Exchange Commission (SEC) and Ripple have jointly requested a federal judge to dissolve a court injunction and approve a revised $50 million penalty settlement to conclude their multi-year legal dispute over XRP. The proposed settlement requires Ripple to pay $50 million to the SEC, with $75 million being returned to Ripple. This follows a 2024 final judgment that imposed a $125 million penalty and an escrow order.

This renewed effort aims to resolve pending appeals and avoid further litigation, with both parties citing "exceptional circumstances" as justification for reconsidering the penalty and the injunction. The SEC's willingness to accept a reduced fine signals a potential shift in its regulatory enforcement strategy concerning cryptocurrencies.

The legal battle began in December 2020 when the SEC sued Ripple for allegedly selling XRP as an unregistered security. After years of litigation and partial rulings favoring both sides, a summary judgment in 2023 and a final judgment in 2024 enforced penalties and escrow requirements on Ripple. Despite the penalties, the SEC filed an appeal, which prompted Ripple to file a cross-appeal, prolonging the legal proceedings.

Both Ripple and the SEC have now refocused on settling the matter, submitting a joint motion to the Southern District of New York seeking an indicative ruling to dissolve the injunction. If granted, they plan to petition the U.S. Court of Appeals for the Second Circuit to remand the case for a formal resolution. The move reflects broader industry efforts to reduce regulatory uncertainty and signals a possible moderation in the SEC’s approach to crypto enforcement. The court has yet to issue a ruling on this joint settlement proposal.

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