Ripple and SEC Seek Court’s Approval for Final Settlement Execution
In a joint filing dated May 8, 2025, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. formally requested that the Southern District of New York issue an indicative ruling to facilitate the execution of a proposed settlement. The request, directed to Judge Analisa Torres, seeks two key actions: to dissolve the injunction included in the Final Judgment against Ripple and to authorise the disbursement of $125,035,150 held in escrow.
Under the proposed terms, $50 million of that amount would be paid to the SEC, satisfying the civil penalty in full, while the remainder would be returned to Ripple.
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Indicative Ruling Needed to Advance Appeals Process
If the court issues the indicative ruling, both parties plan to move the United States Court of Appeals for the Second Circuit to remand the case temporarily. This would allow Judge Torres to formally approve the settlement. The filing notes that this action is supported jointly by the SEC and Ripple, as well as individual defendants Bradley Garlinghouse and Christian Larsen.
This move reflects a final stage in resolving the long-standing legal dispute between Ripple and the SEC.
Case History: From Summary Judgment to Final Appeal
The case took a major turn on July 13, 2023, when Judge Torres issued a summary judgment order granting and denying in part both parties’ motions. Subsequently, on October 23, 2023, the SEC agreed to dismiss all remaining claims against Garlinghouse and Larsen.
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The court entered its Final Judgment on August 7, 2024, imposing a civil penalty of $125 million and issuing an injunction prohibiting Ripple from further violations of federal securities laws. The judgment was temporarily stayed on September 4, 2024, pending appeal, with the escrowed penalty amount placed in an interest-bearing account.
Appeals Process Nears Conclusion
Both the SEC and Ripple filed appeals following the judgment. The SEC’s appeal was filed on October 2, 2024, followed by Ripple’s cross-appeal on October 10. Those cases remain pending before the Second Circuit Court of Appeals.
The joint filing and proposed settlement represent a significant step toward resolving the multi-year legal battle, potentially bringing clarity to one of the most pivotal cases in crypto regulation history.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
