XRP News Today: Ripple SEC Penalty Reduced 60% in Proposed Settlement

Ripple and the U.S. Securities and Exchange Commission (SEC) have submitted a joint motion to Judge Analisa Torres, seeking to modify the final settlement terms of their ongoing lawsuit. The motion, filed in early May, proposes to reduce Ripple's penalty from $125 million to $50 million and lift the injunction that has restricted Ripple’s institutional XRP sales since August 2024. If approved, this settlement would see $50 million paid to the SEC as a civil penalty, with the remaining $75 million returned to Ripple. Both parties argue that this resolution would save judicial resources and avoid further appeals.

Legal experts, including Attorney John E. Deaton, have expressed optimism about the likelihood of Judge Torres approving the motion. Deaton, known for his advocacy in the XRP case, estimates a 70% chance that the judge will approve the relief requested by both parties. This optimism is shared by other analysts, who believe that the procedural language and the potential to save court resources make the motion compelling. The joint motion, filed with the U.S. District Court for the Southern District of New York, underscores the benefits of approving the settlement, stating that the proposed resolution will preserve judicial resources and bring an end to the lengthy litigation.

However, not all legal experts are convinced. Former SEC official Marc Fagel has expressed concern about the SEC’s reasoning in the latest court filing, noting that the agency’s reference to elections and changing policy focus is not a strong legal argument. Despite these reservations, the overall sentiment among legal analysts is that Judge Torres is likely to approve the motion, given the procedural benefits and the potential to save court resources.

The outcome of this case has significant implications for the broader crypto industry. A favorable ruling for Ripple could set a precedent for how regulatory bodies approach cryptocurrencies, potentially leading to more favorable regulations in the future. Conversely, a ruling against Ripple could have far-reaching consequences, affecting not only Ripple but also other cryptocurrencies and blockchain projects.

All eyes are now on June 16, 2025, the day the SEC must submit a status report to the U.S. Court of Appeals for the Second Circuit. The legal battle between Ripple and the SEC has reached a critical juncture, with Judge Torres poised to make a pivotal decision on the joint motion. This decision could have far-reaching implications for the crypto industry, providing much-needed regulatory clarity and potentially setting a precedent for future cases.