- Ripple and the SEC jointly seek court approval to end their legal dispute and split the $125 million civil penalty escrow funds.
- The motion signals a shift in SEC enforcement strategy under Trump, with Ripple’s case potentially setting precedent for crypto regulation.
- Addressing past procedural flaws, the filing aims to meet Rule 60(b) standards and dissolve the injunction tied to Ripple’s penalty.
According to Fox Business reporter Eleanor Terrett, the Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion seeking to dissolve an injunction and release $125 million in escrow. Both parties now aim to finalize their settlement and end all related appeals. The proposal requests $50 million be paid to the SEC, with the remainder returning to Ripple. Judge Analisa Torres received the motion through the Electronic Case Filing system on June 12, 2025. This move signals the parties’ intent to avoid further legal proceedings and close a years-long battle.
Key Background and Legal Developments
The legal dispute started in December 2020 when the SEC filed an enforcement action against Ripple for allegedly breaking Section 5 of the Securities Act. In a Summary Judgment Order dated July 13, 2023, the court found Ripple accountable for selling institutional investors unregistered XRP. A Final Judgment was issued on August 7, 2024, imposing injunctive relief and a $125 million civil penalty.
Consequently, Ripple deposited 111% of the penalty amount into an interest-bearing escrow. The funds remain under Ripple’s counsel pending the court’s final ruling. However, on May 8, 2025, both sides filed a Rule 62.1 request, which Judge Torres denied. The court ruled that the parties failed to show exceptional circumstances under Rule 60(b).
The updated motion addresses those procedural shortcomings. It demonstrates why the court should modify the Final Judgment. Moreover, both parties have agreed to suspend pending appeals before the Second Circuit, allowing room for settlement.
Political Climate and Regulatory Shift
The regulatory landscape is shifting under President Donald Trump’s administration, which coincides with this filing. The SEC has tempered its attitude on cryptocurrency, which was originally harsh under former Chair Gary Gensler. The dismissal of a number of cryptocurrency lawsuits suggests a calculated backtracking.
Additionally, SEC Commissioner Caroline Crenshaw has voiced concerns. In May, she warned that this shift could expose investors to greater risk. Still, the current SEC leadership appears committed to resolving long-standing disputes like Ripple’s.
The court will decide whether the suggested modifications satisfy the “exceptional circumstances” criterion needed to modify the Final Judgment. The ruling may signify a shift in the way U.S. officials handle cases involving cryptocurrency and have an impact on future enforcement decisions.
