XRP News Today: Ripple SEC Battle Nears End With $125 Million Penalty Split

In a pivotal development, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion in a Manhattan District Court on June 12, 2025, seeking to dissolve a 2024 injunction and split a $125 million civil penalty held in escrow. The proposal allocates $50 million to the SEC, with the remaining $75 million to be returned to Ripple. This move signifies a potential end to their four-year legal battle over unregistered XRP sales, which commenced in December 2020.

This latest development follows Judge Analisa Torres’ August 2024 ruling, which imposed a $125 million penalty on Ripple—significantly lower than the SEC’s initial $2 billion demand. The judge rejected disgorgement, citing no direct investor harm, a precedent reinforced by the SEC v. LBRY case (2023), where a similar penalty was upheld without disgorgement. The injunction, however, had restricted Ripple’s ability to sell XRP, impacting its On-Demand Liquidity (ODL) solution, a key driver of XRP’s utility.

The joint motion reflects a softening SEC stance under new leadership, evidenced by recent dismissals of enforcement actions against other crypto entities. The filing argues “exceptional circumstances”—including a settlement intent, evolving SEC crypto policy, and a desire to avoid further litigation—justify modifying the final judgment. A status report is due by June 16, 2025, which could shape the outcome.

For the XRP community, this is a pivotal moment. Despite market volatility, technical indicators suggest bullish potential in the second half of 2025. The resolution could stabilize XRP, though conservative institutions may remain cautious due to the lingering injunction’s effects.

Legal analysts note that Judge Torres has no immediate ruling pending, leaving the decision to her discretion. If approved, this could mark a broader shift in crypto regulation, especially with pending legislation. For now, the crypto world watches as Ripple and the SEC inch closer to closing a chapter that has defined XRP’s tumultuous journey.

The court has not yet ruled on the renewed joint request. If the court grants the indicative ruling, the SEC and Ripple intend to petition the U.S. Court of Appeals for the Second Circuit to remand the case for formal resolution in the district court. This effort follows the court’s May 8 decision denying a similar request for failing to demonstrate “exceptional circumstances” under Rule 60(b) of the Federal Rules of Civil Procedure.