XRP News Today: Ripple SEC Seek 60% Penalty Cut in XRP Dispute

Ripple and the U.S. Securities and Exchange Commission have taken a significant step towards resolving their long-standing legal dispute over XRP. Both parties have jointly requested the Manhattan District Court to modify previous rulings, aiming to dissolve the injunction on XRP and reduce the civil penalty from $125 million to $50 million. This move, if approved by Judge Analisa Torres, could bring much-needed clarity to the crypto industry and potentially halt further appeals.

The joint motion filed by Ripple and the SEC argues that "exceptional circumstances" exist, allowing the court to alter its decision to promote settlement. Legal expert Bill Morgan noted that both sides relied on legal precedents to support their request. If the court denies the motion, it would block the conditions needed for the current settlement, and the appeal and cross-appeal processes would continue without resolution.

Despite claims from industry influencers, the Ripple-SEC lawsuit remains unresolved and hinges on the court’s approval of the joint motion. Without this approval, the proposed settlement cannot be fulfilled, and litigation may resume. The outcome of this motion will determine whether the case is brought to a close or if legal uncertainty will persist.

In a broader regulatory shift, the SEC has withdrawn key proposals introduced during Gary Gensler’s tenure. These proposals targeted decentralized finance (DeFi) platforms and imposed strict custody requirements on crypto advisors. Their removal signals a potential shift in tone from the agency and brings optimism to the crypto market. Projects like Ethereum, Solana, Arbitrum, and Injective are expected to benefit as regulatory clarity improves, suggesting a new phase of cooperation may be taking shape.

The joint request between Ripple and the SEC reflects a growing urgency to avoid drawn-out legal proceedings. If granted, it could clear a path toward resolving one of crypto’s most-watched lawsuits. The broader regulatory changes, including the withdrawal of DeFi and custody rules, suggest that the SEC may be adopting a more cooperative stance, which could foster innovation in decentralized finance and digital asset infrastructure.