Ripple and the U.S. Securities and Exchange Commission (SEC) have made a significant move in their ongoing legal battle by refiling a joint request to dissolve a court-imposed injunction and approve a revised $50 million penalty settlement. The aim is to finally bring an end to the years-long dispute between the two parties.
In a court filing dated June 12, 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 that was issued in a Final Judgment back in 2024. The proposal includes a $50 million civil penalty to be paid to the SEC, with the remaining $75 million to be returned to Ripple.
If the court grants the indicative ruling, the SEC and Ripple plan to petition the U.S. Court of Appeals for the Second Circuit to remand the case for formal resolution in the district court. This latest effort comes after a previous request made on May 8 was denied due to a lack of “exceptional circumstances” under Rule 60(b) of the Federal Rules of Civil Procedure.
The legal dispute dates back to a December 2020 lawsuit filed by the SEC, alleging that Ripple had violated federal securities laws by selling XRP as an unregistered security. After years of litigation, a summary judgment was issued in July 2023, partially ruling in favor of both parties. In August 2024, a final judgment enjoined Ripple and imposed a $125 million penalty, followed by a September 2024 order requiring Ripple to deposit 111% of that amount into escrow.
Following an appeal from the SEC against the final judgment, Ripple filed a cross-appeal, leading to both parties coming together to file a motion to settle the case in May. The current motion is part of a broader effort to put an end to all pending appeals and prevent further litigation. Both parties argue that “exceptional circumstances” now exist, warranting a reconsideration of the penalty structure and the validity of the injunction.
Ripple’s decision to reduce its financial liability and bring closure to the legal proceedings is in line with the industry’s push to resolve regulatory uncertainties. On the other hand, the SEC’s willingness to accept a reduced fine, if approved, would indicate a shift in its approach to crypto regulation enforcement.
As of now, the court has not yet ruled on the renewed joint request, leaving the outcome of this latest development still uncertain. This move could potentially mark a significant turning point in the ongoing legal battle between Ripple and the SEC.