On June 12, in a latest filing in the long-running legal battle between the U.S Securities and Exchange Commission (SEC) and Ripple Labs, the two parties have jointly asked a Manhattan federal court to dissolve an existing injunction and release the $125 million civil penalty currently held in escrow.
According to a new court filing, the SEC and Ripple have proposed a settlement that would see $50 million paid to the regulator, with the remaining funds returned to the blockchain company.
????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
The motion comes when the U.S. regulatory authorities are making intense efforts to advance the discussion of crypto regulations. On June 11, the US Senate voted 68-30 to move forward with the GENIUS Act, which is a bill that sets rules for stablecoins like USDC and USDT.
The SEC initially sued Ripple in 2020 for allegedly selling XRP as an unregistered security. While a Judge ruled last year that Ripple’s programmatic sales did not violate securities laws, institutional sales were deemed improper. It leads to the $125 million penalty.
If approved, this agreement could bring the years-long dispute closer to a final resolution.
While assessing XRP, Judge Analisa Torres remarked that the digital asset by itself is not “a ‘contract, transaction, or scheme’ that embodies the Howey requirements of an investment contract,” and thus it is not a security.
The motion argues that ‘exceptional circumstances’, including the settlement terms, the SEC’s shifting stance on crypto enforcement, and mutual desire to avoid prolonged litigation. It justifies a change in Judge Analisa Torres’s original judgment. This comes after her May ruling, where she denied a prior request for adjustment.
Also Read: Cryptocurrency is Here to Stay: Senator John Thune
