In a renewed effort to close the curtain on their long-running legal feud, Ripple and the U.S. Securities and Exchange Commission (SEC) have filed a joint motion proposing a $125 million resolution to end the case once and for all.
The latest court filing, submitted on Thursday to the Southern District of New York, asks Judge Analisa Torres to dissolve the previous injunction against Ripple and approve a split: $50 million in penalties to the SEC, and the remaining $75 million returned to Ripple. The request follows the judge’s earlier rejection of a proposed settlement and comes with a clear message—both parties want out of the courtroom.
According to the filing, approving this proposal would “promote judicial efficiency, align with the SEC’s recent pattern of settlements in crypto enforcement actions, and eliminate the need for continued litigation or appeals.”
This legal chapter began in 2020, when the SEC accused Ripple of raising $1.3 billion through what it considered an unregistered securities offering of XRP. Judge Torres’s landmark decision last year found that Ripple’s programmatic sales—those made on exchanges via blind bid—did not qualify as securities. However, she ruled that direct XRP sales to institutional investors did.
The proposed resolution respects that distinction while signaling an appetite for closure on both sides. It also underscores a broader regulatory pivot: the SEC, after years of aggressively pursuing crypto firms, now appears more open to negotiated outcomes—especially in cases where the boundaries of securities law remain contested.
If the judge approves the filing, it would mark the official end of one of crypto’s most high-profile legal battles—one that has shaped how regulators, companies, and investors interpret token sales and securities law.
Ripple Seeks Refund as Parties Finalize $125M Split
As the years-long Ripple vs. SEC saga nears its conclusion, the remaining dispute boils down to the division of a $125 million penalty. According to the filing, Ripple and the SEC have jointly proposed a plan that would allocate $50 million to the SEC, while returning the remaining $75 million to Ripple—a move designed to streamline settlement and avoid further legal entanglements.
This fine stems from Judge Torres’ earlier ruling that XRP’s institutional sales did indeed constitute unregistered securities offerings, unlike the token’s retail, programmatic sales. That legal distinction has shaped the trajectory of the case and its eventual outcome.
Ripple CEO Brad Garlinghouse had previously declared that the legal battle was “effectively over” after the SEC dropped its appeal. However, the final resolution has been delayed by procedural hurdles, including Judge Torres’ recent rejection of Ripple’s request for an indicative ruling on jurisdiction—a procedural move the court found unjustified.
In her decision, Torres emphasized that vacating the previous injunction against Ripple requires “exceptional circumstances,” a standard she said the parties failed to meet.
Ripple, SEC Cite Policy Shift to Justify Closure
In the joint court filing, Ripple and the SEC pointed to the shifting regulatory climate under the new administration as a key reason for expediting a resolution. The document highlights how the SEC’s posture on digital assets has softened since the departure of former Chair Gary Gensler earlier this year.
Under new leadership aligned with the Trump administration, the SEC has dropped several ongoing investigations into prominent crypto firms and launched a dedicated crypto task force. This unit has since hosted public roundtables aimed at developing a clearer regulatory framework for the industry—marking a sharp turn from the combative stance of recent years.
Lawyers representing both Ripple and the SEC referenced these developments in their call to modify the final judgment. They argue that the evolving regulatory landscape creates “exceptional circumstances” that justify a swift conclusion to the case, eliminating the need for further appeals and conserving legal and regulatory resources.
Quick Facts
- Ripple and the SEC filed a joint motion to settle for $125M.
- $50M would go to the SEC, $75M would return to Ripple.
- Judge Torres previously ruled XRP’s institutional sales violated securities law.
- The SEC’s posture has softened under new Trump-aligned leadership.
- If approved, this ends one of crypto’s longest-running legal battles.
