Ripple vs. SEC Nears Final Chapter: Joint Request for Settlement Approval
In a landmark turn of events, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. have jointly petitioned U.S. District Judge Analisa Torres for an indicative ruling that could bring a multi-year legal battle to an end. The filing, dated May 8, 2025, requests the dissolution of the longstanding injunction against Ripple and the release of funds held in escrow as part of a $125 million civil penalty judgment.
This joint request signals a major milestone in the ongoing litigation that has captivated the cryptocurrency world and shaped the regulatory landscape around digital assets.
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Settlement Proposal and Financial Disbursement
The parties seek to execute a settlement agreement under Federal Rule of Civil Procedure 62.1. Specifically, they request that the Court dissolve the injunction included in the Final Judgment from August 2024 and approve the release of the $125,035,150 penalty currently held in escrow.
According to the proposal, $50 million would be remitted to the SEC as satisfaction of the judgment, with the remaining balance returned to Ripple. Should the Court agree, both parties will jointly move the United States Court of Appeals for the Second Circuit for a limited remand to implement the agreement.
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This significant step comes after a series of appeals and cross-appeals following Judge Torres’ Summary Judgment Order in July 2023, which partially ruled against Ripple while dismissing claims against executives Brad Garlinghouse and Chris Larsen.
Ripple’s Legal Journey: A Timeline
The legal clash began in December 2020, with the SEC alleging Ripple’s unregistered sale of XRP as securities. Since then, the courtroom battle has seen dramatic twists—from partial wins for both sides to sweeping industry implications. The Final Judgment in August 2024 enforced a $125 million penalty and barred Ripple from future violations, pending further court decisions.
On January 15, 2025, the SEC submitted its opening appeal brief, with Ripple filing a cross-appeal. These appeals now stand at the brink of being withdrawn, contingent upon the court’s approval of the latest joint motion.
Implications for Crypto Regulation
Should the Court approve the indicative ruling, it would mark not only the end of one of the crypto industry’s most influential cases but also set a regulatory precedent for how digital assets are classified and enforced in the U.S.
The decision is now in the hands of Judge Torres, and the crypto world awaits with bated breath.
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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.
