Ripple and the SEC Submit a Collaborative Motion to Resolve the $125M Lawsuit
One of the most enduring litigations in the crypto asset sector might soon draw to a close as the involved parties work towards resolving their disagreements. Ripple and the US Securities and Trading protocol Commission (SEC) have collectively suggested settling their $125 million civil fine.
As per the court documents released by Fox Business reporter Elanor Terett on June 12, 2025, both parties are aiming to resolve Judge Analisa Torres’s final ruling ahead of the deadline set for June 16.
The court documents indicate that both parties have made a request to a Manhattan court to free the $125 million currently in escrow and to revoke the earlier issued injunction. According to the proposal, $50 million would go to the SEC, while the remaining $75 million would be returned to Ripple.
This marks the second attempt at settlement after Judge Analisa Torres dismissed their initial settlement motion on May 15. During that session, she remarked, “If jurisdiction was restored to this Court, the Court would deny the parties’ motion as procedurally improper.”
LATEST: The @SECGov and @Ripple have collectively requested a Manhattan District court to lift the injunction in their ongoing case and release the $125 million fine held in escrow.
They propose to allocate $50 million to the SEC, with the remaining amount being returned… pic.twitter.com/UopQuQNG5q
— Eleanor Terrett (@EleanorTerrett) June 12, 2025
Bill Morgan, a lawyer supportive of digital currency, expressed his opinion on X about the distinctions between the initial settlement motion and the recent one, stating, “In the joint motion submitted today by the SEC and Ripple to illustrate exceptional circumstances, the parties reference authorities that have established that exceptional circumstances are present when modifying a judgment is essential to enable a settlement that would eliminate pending appeals, and where relief from the judgment is a ‘necessary condition of settlement.”
He further noted that unless a settlement is reached, both Ripple and the SEC will proceed with their respective appeals and counter-appeals.
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Ripple-SEC Appeals and Counter Appeals History
The latest updates arise from a lengthy and intricate legal history between the two parties, following the SEC’s lawsuit against Ripple in 2020 for allegedly selling unregistered securities to investors through institutional XRP sales.
Ripple, in its counter-appeal, claimed no wrongdoing and achieved a partial legal win when Judge Torres determined that the programmatic sales of XRP to retail investors on public exchanges did not constitute securities offerings. However, the court did emphasize that Ripple’s institutional sales had breached regulations.
After the court’s ruling, the SEC initially sought a $2 billion fine but later revised it down to $125 million.
The court’s rejection of Ripple and the SEC’s initial settlement motion resulted in a significant decline in XRP, plummeting to $2.3551. Nonetheless, analysts foresee a potential rise in its value if the settlement motion is approved this time around.
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Potential Regulatory Developments Ahead?
While this motion awaits court approval, the joint action from the SEC and Ripple suggests an increasing alignment between the two organizations. If sanctioned, could it serve as a precedent for other companies to tackle any upcoming regulatory issues?
Terrett, in her subsequent posts on X, speculated that the combination of settlements, the change in SEC policies under the Trump administration, and a barrier level to lengthy legal battles could lead to a different outcome from Judge Torres this time.
The filing advocates that ‘exceptional circumstances’ — encompassing a settlement, the SEC’s alteration in crypto policy, and the intent to prevent further litigation — warrant altering Judge Torres’s final judgment.
This follows her decision in May, where she dismissed a similar plea for… https://t.co/2pPQBmZFAE
— Eleanor Terrett (@EleanorTerrett) June 12, 2025
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Key Insights
- Ripple and the SEC have jointly suggested resolving their $125 million civil penalty
- Per the settlement proposal, the SEC will receive $50 million while Ripple will get $75 million
- This marks their second attempt at settlement following Judge Analisa Torres’s dismissal of their first motion on May 15
The post Ripple and the SEC File a Joint Motion to Settle the $125M Lawsuit appeared first on 99Bitcoins.
