Ripple SEC Battle Nears End With $50 Million Settlement Proposal

The ongoing legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) may be nearing its conclusion. On June 12, 2025, both parties submitted a joint motion to Judge Analisa Torres in New York’s Southern District Court, seeking to end the legal dispute by modifying the terms of a previously issued final judgment.

This new motion aims to resolve the long-standing legal battle by altering the conditions of the final judgment. BrettCrypto, a prominent figure in the cryptocurrency community, posted on X (formerly Twitter) about the filing, describing it as a “bombshell” and suggesting that both sides are eager to conclude the dispute. According to the tweet, Ripple would pay $50 million, retain the remaining escrowed funds, and proceed without further appeals. This interpretation aligns with the general direction of the filing, although the court has not yet ruled on the request.

The five-page court document outlines that Ripple and the SEC are requesting an indicative ruling to dissolve the existing injunction against Ripple. The parties are asking for the $125 million civil penalty to be released from escrow, based on Rules 60(b) and 62.1 of the Federal Rules of Civil Procedure. If the proposed terms are approved, $50 million would be paid to the SEC as full satisfaction of the penalty, while the rest would be returned to Ripple. The filing argues that exceptional circumstances now exist to warrant a modification of the court’s previous order, potentially reducing the penalty and avoiding further appeals.

The dispute between Ripple and the SEC has been ongoing since 2020. The court originally issued a summary judgment in July 2023, finding that Ripple had violated Section 5 of the Securities Act. A final judgment was entered in August 2024, imposing a $125 million penalty and a permanent injunction. Ripple was ordered to deposit the full penalty amount into an interest-bearing escrow account. In May 2025, a previous request for relief under Rule 62.1 was denied due to insufficient justification. The new filing responds to that denial by providing further explanation and context to support the proposed modification.

While the tweet from BrettCrypto suggests that the case is nearing a close, Judge Torres has not issued a ruling yet. If the request is approved, both parties would move to dismiss pending appeals in the Second Circuit. If denied, the legal proceedings would continue under the original terms. The court’s decision will determine whether this filing marks the final step in a legal case that has significantly influenced the regulatory status of XRP since 2020.