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Ripple and the U.S. Securities and Exchange Commission (SEC) have filed a renewed joint motion requesting the dissolution of an injunction against the blockchain company and approval of a $125 million settlement agreement. The filing in New York Southern District Court comes six weeks after Judge Analisa Torres rejected their initial proposal.
The motion argues that “exceptional circumstances” justify modifying the final judgment, including evolving regulatory approaches to crypto assets and both parties’ desire to avoid prolonged appeals. This development marks a potential conclusion to the 5-year legal battle over XRP‘s regulatory status.
Court documents reveal the proposed settlement would release $50 million to the SEC as civil penalties, with Ripple retaining $75 million from funds held in escrow. The agreement would dissolve an injunction prohibiting Ripple from violating securities laws through institutional XRP sales.
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Ripple’s Legal Strategy and Injunction Relief
The San Francisco-based company seeks to remove operational restrictions imposed by the 2024 injunction, which specifically targeted direct institutional sales of XRP. Recent filings emphasize that maintaining the injunction creates “ongoing business uncertainties” for Ripple’s payment solutions.
Legal experts note the motion invokes Federal Rule of Civil Procedure 60(b), which allows judgment modifications for exceptional circumstances. Ripple’s counsel contends the SEC’s recent settlements with other crypto firms demonstrate changed regulatory circumstances warranting relief.
SEC’s Enforcement Priorities and Penalty Structure
The proposed $50 million penalty represents 40% of the original $125 million civil fine imposed in July 2024. SEC filings justify the reduced penalty as consistent with resolutions in comparable cases, including recent settlements with decentralized protocol developers.
A table comparing key settlement terms:
| Component | Amount |
|---|---|
| SEC Civil Penalty | $50M |
| Ripple Retained Funds | $75M |
| Total Settlement | $125M |
XRP’s Regulatory Status and Market Impact
While Judge Torres’ 2023 ruling differentiated between institutional and programmatic XRP sales, the cryptocurrency’s legal classification remains contentious. The settlement avoids definitive resolution of whether XRP constitutes a security in secondary markets.
Market analysts suggest resolution could improve liquidity for XRP, currently ranked sixth by market capitalization. The outcome may influence ongoing cases against other crypto firms, as noted in The Block’s analysis of SEC enforcement trends.
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- Injunction
- A court order requiring a party to do or cease specific actions. In this case, it prohibits Ripple from conducting unregistered securities transactions.
- Civil Penalty
- Financial punishment imposed for regulatory violations, distinct from criminal charges. The SEC sought penalties for alleged securities law breaches.
- Escrow Account
- A third-party holding account for funds pending legal resolution. Ripple placed $125 million in escrow during the appeals process.
- Securities Laws
- Regulations governing investment contracts. The SEC alleges Ripple violated these laws through XRP sales to institutional investors.
This article is for informational purposes only and does not constitute financial advice. Please conduct your own research before making any investment decisions.
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Editor-in-Chief / Coin Push Dean is a crypto enthusiast based in Amsterdam, where he follows every twist and turn in the world of cryptocurrencies and Web3.