TL;DR
- Ripple and the SEC are seeking to close their legal dispute with a settlement that includes a final $50 million fine and the return of $75 million to the company.
- Judge Analisa Torres will have to decide whether to lift the order imposed in 2024 to release the escrowed funds and formalize the agreement between both parties.
- The SEC has started dropping cases against Coinbase, Consensys, and Kraken, signaling a strategic shift that also affects the resolution of the Ripple case.
Ripple (XRP) and the U.S. Securities and Exchange Commission (SEC) are moving toward closing one of the longest and most publicized legal battles in the crypto industry.
After nearly five years of courtroom clashes, both sides submitted a joint request to dissolve an injunction and release $125 million that has remained in escrow since 2024. The proposal aims to resolve the outstanding financial penalties and avoid a prolonged appeals process.
https://twitter.com/FilanLaw/status/1933271659362083127
Under the agreement, Ripple would pay a final $50 million penalty, while the remaining $75 million would be returned to the company. To complete this process, they need Judge Analisa Torres to lift the order issued in August 2024, which barred Ripple from violating securities regulations and had established the original penalty.
The funds were frozen in September of that year when the court agreed to pause enforcement of the ruling, allowing both sides to file appeals. Those proceedings were suspended in April to make room for this negotiation.
Ripple and the SEC Agree to Uphold the 2023 Rulings
Ripple and the SEC previously tried to amend the terms in May, but the judge denied the request, citing a lack of justification for “exceptional circumstances.” In this new filing, both parties argue that lifting the injunction is essential to finalize the agreement, reduce the court’s workload, and avoid the strain of a drawn-out dispute. The proposal also clarifies that the 2023 rulings remain in effect: XRP sales to institutional investors violated securities laws, while programmatic sales to the general market did not.
This proposed settlement aligns with a broader shift in SEC strategy under the current administration, which has begun closing cases against other crypto firms like Coinbase, Consensys, and Kraken. The move seeks to ease regulatory pressure and recalibrate oversight criteria within the sector.
If the court approves the joint request, the case would be sent back from the Second Circuit Court of Appeals to the district court, where the funds could be distributed according to the agreed terms. The outcome could mark the formal end of a legal dispute that, since 2020, has shaped the relationship between U.S. regulators and digital asset companies.
