XRP News Today: Ripple SEC Settlement Proposal $125 Million

Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly proposed a $125 million settlement deal to conclude their ongoing legal battle. This proposed settlement includes a $50 million payment to the SEC and the release of the remaining $75 million to Ripple. The motion, filed under Federal Rules 60(b), seeks to dissolve a prior injunction and release the funds currently held in escrow. The escrow funds were originally imposed as a penalty for Ripple's institutional sales of XRP.

The joint motion, filed on 12 June 2025, aims to avoid further litigation and appeals by both parties. This is the second settlement attempt by the parties after Judge Analisa Torres rejected their first motion to settle on 15 May. During the hearing, she stated that the motion was procedurally improper. The recent motion relies on authorities that have held that exceptional circumstances exist where modification of a judgment is necessary to facilitate a settlement that would obviate pending appeals and where relief from the judgment is a ‘necessary condition of settlement.’

The legal battle between Ripple and the SEC began in 2020 when the SEC sued Ripple for offering unregistered securities to investors through the institutional sales of XRP. Ripple denied any wrongdoing and managed to secure a partial legal victory when Judge Torres ruled that the programmatic sales of XRP to retail buyers on public exchanges did not qualify as securities offerings. However, the court highlighted that Ripple’s institutional sales had violated regulations. Following the court’s decision, the SEC initially sought a $2 billion penalty, which it later reduced to $125 million.

The proposed settlement, if approved, could set an example for other businesses navigating future regulatory challenges. The filing argues that 'exceptional circumstances'—including a settlement, the SEC’s shift in crypto policy, and a desire to avoid further litigation—justify modifying Judge Torres’s final judgment. This follows her May decision, where she denied a similar request for relief from the judgment. The court is expected to rule on the motion before the 16 June deadline.

If Judge Torres approves the joint request, the settlement may be finalized, potentially ending a case that has lasted close to five years. This could become a landmark case in the future resolution of similar disputes. However, if the judge does not approve the settlement, the case may return to the appeal and cross-appeal stages, leading to further legal uncertainty for Ripple and the broader crypto sector. The court's decision will be crucial in shaping the future of Ripple and similar cases, as it will set a precedent for how the SEC handles crypto-related disputes.