XRP News Today: Ripple SEC Settlement Proposal Reduces Penalty 60% to $50 Million

Ripple and the U.S. Securities and Exchange Commission (SEC) have made a significant move towards resolving their protracted legal dispute over the classification of XRP, Ripple's native cryptocurrency. In a joint filing submitted to the Southern District of New York, both parties have requested the court to dissolve the existing injunction and reduce the civil penalty from $125 million to $50 million. This proposed settlement represents a crucial turning point in the legal battle, which has lasted for several years and has had significant implications for the cryptocurrency industry.

The joint filing indicates that both Ripple and the SEC are keen to conclude this contentious chapter. The proposed reduction in the civil penalty shows a willingness on both sides to compromise and move forward. The court's decision on the motion will depend on whether it deems the circumstances to be "exceptional," a legal standard that could lead to a more favorable outcome for Ripple. If approved, the $50 million payment would be returned to the escrow account, effectively reducing the financial burden on Ripple.

The legal battle between Ripple and the SEC has been closely monitored by industry observers and stakeholders. The outcome of this case could set a precedent for how cryptocurrencies are regulated in the United States. The proposed settlement, if approved, could signal a shift in the regulatory landscape, potentially leading to more clarity and cooperation between the SEC and the cryptocurrency industry. This development underscores the importance of regulatory compliance and the need for clear guidelines in the rapidly evolving world of digital assets.

The joint filing also highlights the potential for regulatory change, as both parties have indicated a willingness to work together to find a mutually acceptable resolution. This cooperative approach could serve as a model for future disputes between regulators and the cryptocurrency industry, fostering a more collaborative and constructive dialogue. The proposed settlement, if approved, would not only bring an end to the legal battle but also pave the way for a more stable and predictable regulatory environment for digital assets.

Ripple is arguing that the landscape has changed, the penalty terms were overbroad, and it’s time to wrap this up. The SEC is on board, asking the judge to reconsider her original decision under Rule 60(b)—a rare legal mechanism that requires showing extraordinary circumstances. Both parties argue that’s exactly what this is: a changed regulatory climate, new facts, and a settled penalty agreement. Translation: they want the judge to fast-track this closure.

Ripple would walk away with $75 million. That’s dry powder for expansion, legal wins, or ecosystem support—right as XRPL adoption accelerates. More importantly, XRP’s years-long legal cloud would clear. No more wondering about appeals. No more SEC headwinds. No more stigma. This isn’t just about one court case. It’s about freeing XRP to be treated like the institutional asset Ripple always said it was.

However, the judge could still deny the motion. Some lawyers think she might do it again. Attorney Fred Rispoli wasn’t impressed by the new filing, saying bluntly, “I don’t like this.” Others, like Sherrie, called it a slight improvement—but warned the judge could still push back. So don’t call it over just yet. But if the motion is approved, this becomes the official turning point in the Ripple-SEC saga.