After nearly five years of legal dispute, Ripple and the SEC seek to lift sales restrictions and split a 125 million USD penalty – a decisive step toward a full resolution of the case.

Ripple and the US Securities and Exchange Commission jointly filed a motion with the relevant court in Manhattan. At the heart of the request is the lifting of the 2024 injunction against Ripple and the release of the 125 million USD fine held in escrow. It is proposed that 50 million USD be paid to the SEC, with the remaining amount retained by Ripple.

Background of the legal dispute

The conflict began in December 2020, when the SEC accused Ripple of distributing XRP as unregistered securities. An initial “summary judgment” in July 2023 ruled that some of the XRP sales (including many direct institutional transactions) constituted securities offerings, while others – such as automated sales through exchanges – were deemed legal. A final ruling in August 2024 imposed sales restrictions and a 125 million USD penalty, which was placed in escrow pending final legal approval.

Citing Rule 60(b) of the Federal Rules of Civil Procedure, Ripple and the SEC argue that “extraordinary circumstances” exist – such as both parties agreeing to a reduced penalty. The aim is to lift the ten-month restriction. If the court agrees, Ripple is also seeking the return of the excess 75 million USD and a full closure of the case to avoid formal appeals.

Reactions and outlook

The latest motion follows a recently rejected, procedurally flawed request from May 2025, which had attempted to unilaterally enforce the purchase restrictions and penalty – without sufficient legal basis.

Industry observers now expect a final resolution soon. Lifting the ban and releasing the funds would give Ripple room to resume XRP sales and significantly reduce regulatory uncertainty for the cryptocurrency. At the same time, the SEC would maintain its position as a negotiation partner and demonstrate that settlements are possible in the crypto regulatory environment.

A reason for optimism: Ripple CEO Brad Garlinghouse had already indicated in March that the SEC would not pursue its appeal – a clear sign that a settlement is imminent.