Ripple and the U.S. Securities and Exchange Commission have refiled a joint request asking a federal judge to dissolve a court-imposed injunction and approve a revised $50 million penalty settlement, aiming to conclude their years-long legal battle.
According to a June 12 court filing, the SEC and Ripple 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 a 2024 Final Judgment.
The two parties proposed that $50 million be paid to the SEC as a civil penalty, with the remaining $75 million returned to Ripple.
If the court grants the indicative ruling, the SEC and Ripple intend to petition the U.S. Court of Appeals for the Second Circuit to remand the case for formal resolution in the district court.
This effort follows the court’s May 8 decision denying a similar request for failing to demonstrate “exceptional circumstances” under Rule 60(b) of the Federal Rules of Civil Procedure.
Settlement momentum builds
The case stems from a December 2020 lawsuit alleging Ripple violated federal securities laws by selling XRP as an unregistered security.
After years of litigation, the court in July 2023 issued a summary judgment, ruling partially in favor of both parties. A final judgment in August 2024 enjoined Ripple and imposed a $125 million penalty, followed by a September 2024 order requiring Ripple to deposit 111% of that amount into escrow.
However, the SEC subsequently filed an appeal against the final judgement, causing Ripple to file a cross-appeal. The saga eventually culminated in both the firm and regulator filing a motion to settle the case in May.
The current motion reflects a broader effort to end all pending appeals and avoid further litigation. In the motion, both parties emphasized that “exceptional circumstances” now exist, warranting the court’s reconsideration of the penalty structure and the injunction’s continued validity.
Ripple’s move to reduce its financial liability while closing the legal chapter aligns with a broader push within the industry to resolve regulatory uncertainty.
Meanwhile, the SEC’s willingness to accept a reduced fine, if approved, would signal a shift in its litigation strategy amid ongoing scrutiny of its enforcement-centric approach to crypto regulation.
The court has not yet ruled on the renewed joint request.
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