XRP News Today: Ripple Seeks 60% Penalty Reduction in SEC Settlement

In the ongoing legal battle between Ripple and the SEC, a joint motion has been filed seeking to modify the final settlement terms. Ripple is requesting that the penalty amount be reduced from $125 million to $50 million, with the remaining $75 million of the escrowed funds returned to the company. Additionally, Ripple is asking for the injunction that has restricted its institutional XRP sales since August 2024 to be lifted. This motion, if approved, could bring the four-and-a-half-year lawsuit to a close, saving both parties and the court significant time and resources.

Legal experts, including Attorney John E. Deaton, have expressed their opinions on the likelihood of Judge Analisa Torres approving the motion. Deaton, who has been a vocal advocate in the XRP case, estimates a 70% chance that the judge will grant 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, highlights 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 raised concerns 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. This report will provide further insight into whether the settlement progress will continue or if the legal appeals will proceed. The court's decision on the joint motion will be crucial in determining the future of the case and its impact on the crypto industry.