Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are making a renewed push to resolve their long-running legal dispute over XRP, signaling a potential turning point for the crypto industry. Both parties have jointly filed a new motion with Judge Analisa Torres, aiming to modify the final judgment from August 2024 and bring the case to a close 2.
Background: A Prolonged Legal Battle
The legal standoff began in December 2020, when the SEC accused Ripple of raising $1.3 billion through unregistered sales of XRP. After more than four years of litigation, the case has seen several twists, including a recent rejection of a $50 million settlement proposal by Judge Torres, who cited procedural flaws and a failure to meet the legal standards for post-judgment relief.
What’s Different This Time?
Learning from the previous setback, Ripple and the SEC have now addressed the court’s concerns by invoking Rule 60(b)(6) of the Federal Rules of Civil Procedure. This rule allows a final judgment to be modified in “exceptional circumstances.” The parties argue that the length of the litigation, the inefficiency of ongoing appeals, and a shift in the SEC’s approach to crypto regulation all justify relief.
Key Points of the New Proposal
• The motion asks the court to dissolve the injunction that currently blocks Ripple from making institutional XRP sales 1.
• The proposed settlement would see Ripple pay a reduced civil penalty of $50 million to the SEC, with $75 million returned to Ripple 4 2.
• The agreement would allow the escrowed penalty funds to be distributed according to the new terms, while preserving the court’s previous legal findings on XRP.
• Both parties are seeking an “indicative ruling” under Rule 62.1, which would allow the case to be remanded for final approval if the court finds the required exceptional circumstances.
What’s Next?
A critical deadline looms on June 16, 2025, when the SEC must update the court on the status of the settlement. If the court is satisfied with the revised motion, the injunction could be lifted and the settlement finalized, potentially ending one of the most closely watched crypto lawsuits in recent years 5.
Industry Context
This move comes as the SEC has recently shown a greater willingness to settle with crypto firms, as seen in the dismissals of cases against Coinbase and Consensys. The outcome of the Ripple case could set an important precedent for how digital assets are regulated in the U.S., and may influence future enforcement actions.
