- Ripple confirms SEC’s agreement to request the court to lift the injunction following Ripple’s withdrawal of its cross-appeal.
- The SEC intends to cut the proposed penalty from $125 million to $50 million, signaling progress toward resolution.
- The case’s turning point comes as SEC Commission approval is now the final step in concluding the multi-year legal dispute.
Ripple’s first-quarter 2025 XRP Markets Report confirmed that the U.S. Securities and Exchange Commission has agreed to request the court to vacate the injunction that had been proposed earlier in the case. This emerging development marks a fundamental change in the prolonged legal battle between Ripple and the SEC because both organizations demonstrate a tendency to resolve their issues.
The new report showed that the SEC decided to reduce their original financial penalty demand from $125 million down to $50 million. This agreement came after Ripple decided to withdraw its cross-appeal. Ripple stated that the SEC’s intent to drop its appeal, pending approval by the SEC Commission, validated the company’s stance throughout the lawsuit.
Public Acknowledgement by Ripple
This update marks the first time Ripple has publicly acknowledged that the SEC would formally request the injunction to be vacated. XRP legal analyst and supporter Bill Morgan highlighted the disclosure, noting its importance in confirming Ripple’s claims that XRP is not a security. Ripple reiterated that the court’s earlier decisions had already distinguished between institutional and retail XRP sales.
The SEC initially filed a lawsuit in December 2020 against Ripple Labs and top executives Brad Garlinghouse and Chris Larsen. The regulator accused the company of conducting an unregistered securities offering, raising $1.3 billion through XRP sales. In July 2023, U.S. District Judge Analisa Torres ruled that XRP was not a security in the context of retail exchange sales, although institutional sales were deemed to have violated securities laws.
By October 2023, the SEC dropped its charges against Ripple’s executives, a move widely viewed as a legal win for Ripple. The latest quarterly report from the company now positions the case closer to a full resolution, with remaining penalties negotiated and the looming injunction set to be lifted. The decision is now awaiting formal approval from the SEC Commission.
