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The long-running court battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) could soon come to an end. In a new joint filing, both Ripple and the SEC have asked a Manhattan District Court to lift an existing order against Ripple and release $125 million currently held in an escrow account.
Here’s what they’re proposing:
Out of the $125 million, $50 million would be paid to the SEC as a penalty, while the remaining amount would be returned to Ripple. This move is part of a bigger effort to settle their nearly five-year legal fight, avoid more court appeals, and close this chapter for good.
A Quick Recap of the Case:
The case began in December 2020, when the SEC sued Ripple, claiming the company had illegally sold XRP as an unregistered security. Over the years, the case saw several rulings, including a partial win for Ripple in July 2023. The court later ordered Ripple to pay a $125 million fine and placed an injunction on the company to stop it from violating securities laws.
Both sides filed appeals after the judgment, keeping the legal fight alive. However, recent talks between Ripple and the SEC led to a settlement agreement. To move forward with this, they need the court’s approval to dissolve the previous orders and distribute the escrowed money as agreed.
Why the Change Now?
The SEC and Ripple explained in their filing that “exceptional circumstances” now exist that make it reasonable to adjust the earlier court judgment. They argue that settling the case would save both government and company resources, avoid drawn-out appeals, and bring closure to a case that’s been closely followed by the crypto industry.
On the flip side, the SEC has recently been closing several other crypto-related cases as it updates its approach to digital asset regulation. This move in the Ripple case fits into that trend.
What’s Next?
The court still needs to respond to this joint request. If the judge agrees, Ripple will pay $50 million to the SEC, keep the rest of the money, and both sides will drop their appeals — officially ending one of the highest-profile legal battles in the crypto world.
