13-6-2025 – A protracted legal saga in the cryptocurrency realm may be nearing its conclusion, as Ripple and the US Securities and Exchange Commission (SEC) have jointly moved to resolve their dispute over a $125 million civil penalty. Court documents, highlighted by Fox Business journalist Eleanor Terrett on 12 June 2025, reveal that both parties have urged a Manhattan court to release the $125 million held in escrow and lift a prior injunction, proposing that $50 million be paid to the SEC, with the remaining $75 million returned to Ripple. This marks their second attempt at settlement, following Judge Analisa Torres’s rejection of an earlier motion on 15 May, when she deemed it procedurally flawed.
The legal tussle, which began in 2020 when the SEC accused Ripple of offering unregistered securities through institutional sales of XRP, has been marked by appeals and counter-appeals. A partial victory for Ripple came when Judge Torres ruled that XRP’s programmatic sales to retail investors on public exchanges did not constitute securities offerings, though she upheld that institutional sales breached regulations. Initially, the SEC pursued a $2 billion penalty, later reduced to $125 million. The failure of the first settlement attempt saw XRP’s value plummet to $2.3551, but analysts now speculate that a successful resolution could spur a price recovery.
Pro-crypto lawyer Bill Morgan, commenting on X, noted that the latest joint motion cites legal precedents supporting settlement under exceptional circumstances, particularly to avoid further appeals. Without an agreement, both Ripple and the SEC are poised to press forward with their respective appeals, prolonging the dispute. The current proposal, filed ahead of a 16 June deadline, reflects a collaborative effort to settle Judge Torres’s final judgment.
This development hints at a potential shift in regulatory dynamics, particularly under the Trump administration’s evolving SEC policies. Terrett suggested on X that a combination of settlement efforts, a reluctance for prolonged litigation, and changing regulatory priorities might sway Judge Torres to approve the motion. Should it succeed, the resolution could serve as a blueprint for other cryptocurrency firms navigating regulatory hurdles, signalling a new chapter of cooperation between the industry and its overseers.
🚨NEW: The @SECGov and @Ripple have jointly requested a Manhattan District court to dissolve the injunction in their ongoing case and release the $125 million civil penalty held in escrow.
They’re proposing that $50 million be paid to the SEC, with the remaining funds returned… pic.twitter.com/UopQuQNG5q
— Eleanor Terrett (@EleanorTerrett) June 12, 2025
