XRP News Today: Ripple and SEC Agree to $50 Million Penalty Reduction in XRP Case

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached another critical juncture. After nearly five years of legal disputes, both parties have requested additional time to finalize a potential settlement. The SEC and Ripple have jointly renewed their motion to modify a $125 million penalty, proposing a reduced $50 million payout. This development comes as the district court awaits a pivotal decision, with the next update expected by August 15, 2025, which could significantly impact the future of XRP.

On June 12, 2025, the SEC and Ripple Labs Inc. submitted a joint motion to the Southern District Court of New York, citing "exceptional circumstances" that warrant a modification to the final judgment. The original judgment imposed a $125 million civil penalty on Ripple for alleged unregistered securities offerings of XRP. Under the revised agreement, the parties propose dissolving the original injunction against Ripple, reducing the financial penalty to $50 million, and returning the remaining $75 million in escrow funds to Ripple.

This is not the first time the court has been asked to modify the judgment. In May 2025, the district court denied an earlier version of this request, stating that the motion did not adequately explain why such a significant change should be allowed under Rule 60(b) of the Federal Rules of Civil Procedure. This denial temporarily halted the momentum toward settlement, but the parties persisted with a revised motion.

With the revised motion still pending review, Ripple and the SEC jointly filed a status report with the Second Circuit Court of Appeals on June 16, 2025. The report requests that the court continue to hold the appeals in abeyance, meaning the appeals process remains paused. This pause was first approved in April 2025 after both sides notified the court that they had reached a tentative agreement, subject to approval from the SEC and district court. On May 8, after the Commission formally approved the terms, both parties executed a binding settlement agreement, contingent upon district court acceptance.

Ripple and the SEC have agreed to a due date for the next status report on August 15, 2025, solely depending on the district court’s ruling on their motion. Assuming the court agrees and grants the requested indicative ruling, the parties are likely to file a motion for a limited remand asking the district court to permit them to return for the express purpose of asking for the modification. If that change is approved, the SEC will receive its reduced fine, the rest of the penalties will be recovered by Ripple, and the two sides will drop their appeals, effectively ending the legal fight.

Although the case is largely procedural at this point, it continues to have a significant impact on the price of XRP. Following the June 16 update, XRP experienced a quick 7% spike, reaching $2.34 as rumors circulated that the long-standing case could be coming to an end. However, the rebound was short-lived, and the XRP price slid to $2.23 as traders hesitated and the court decision neared. This volatility underscores the serious impact of regulatory actions on crypto values, with the price of XRP closely following each significant legal development since the SEC filed its lawsuit in December 2020.

The timeline of the Ripple case includes several key dates and filings. On October 2, 2024, the SEC filed a notice of appeal of the final judgment entered by the district court. On October 10, 2024, Ripple filed a cross-appeal, countering the SEC’s position. On January 15, 2025, the SEC filed its opening brief in the appeal. On April 10, 2025, both parties sought to stay the appeals process in light of their settlement agreement in principle. On May 8, 2025, Ripple and the SEC reached an official settlement, with a change in the judgment. On May 15, 2025, the district court rejected the first request for modification. On June 12, 2025, Ripple and the SEC submitted a joint file for the renewed motion, outlining the “extraordinary circumstances” that comply with Rule 60(b).