XRP News Today: Ripple and SEC Agree to $125 Million Settlement Ending Legal Battle

Ripple and the U.S. Securities and Exchange Commission (SEC) have reached a significant milestone in their protracted legal battle, with a joint filing to release $125 million held in escrow. This move, submitted to a Manhattan court, aims to conclude all pending appeals and prevent further legal proceedings between the two parties. According to the court documents, the proposed settlement involves $50 million being paid to the SEC, while Ripple would receive the remaining $75 million. This is the second attempt at a settlement, following Judge Analisa Torres's rejection of their initial motion on May 15. The court filings indicate that both parties have requested the court to dissolve the previously issued injunction and release the $125 million held in escrow. The proposed settlement seeks to achieve a resolution that would avoid pending appeals and further litigation. The motion is based on legal precedents that recognize exceptional circumstances where modifying a judgment is necessary to facilitate a settlement.

The legal dispute 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 secured 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 determined 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 court’s denial of Ripple and the SEC’s initial motion to settle resulted in a significant setback for XRP. The joint motion filed by the SEC and Ripple to demonstrate exceptional circumstances relies on legal authorities that recognize such circumstances where modifying a judgment is necessary to facilitate a settlement that would avoid pending appeals and where relief from the judgment is a ‘necessary condition of settlement.’ Unless both parties reach a settlement, the SEC and Ripple will proceed with their respective appeals and cross-appeals. 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 modification. The proposed settlement, if approved, could set a precedent for other businesses facing future regulatory challenges. The fact that the SEC and Ripple made the motion in conjunction suggests growing cooperation between the two entities.

This development follows Judge Analisa Torres’s 2023 ruling, which clarified that XRP is not a security when traded on secondary markets. This judgment provided Ripple and the broader crypto industry with a significant boost in credibility. However, the court also found that early XRP sales to institutional investors did qualify as securities. Even Ripple CEO Brad Garlinghouse hailed the SEC’s decision to drop its appeal, calling it a “milestone moment” for the entire industry.

Following the news, XRP has shown signs of recovery despite the recent market dip. The token is currently trading at around $2.16, reflecting a jump of 2.45% in the last 24 hours. Experts see a key resistance at $2.35, with potential upside toward $2.44–$2.60 if momentum builds. On the downside, support lies near $2.05.