Ripple and the U.S. Securities and Exchange Commission (SEC) are pushing to end their nearly five-year legal battle, citing “exceptional circumstances” in a joint filing to a Manhattan court. If approved, the proposed agreement would mark a major turning point in U.S. crypto regulation.
In a joint request, Ripple Labs and the SEC have asked the court to release $125 million currently held in escrow. Under the proposed terms, $50 million would be paid to the SEC as a penalty, while the remaining $75 million would be returned to Ripple.
This settlement marks a potential close to one of the longest-running crypto lawsuits in U.S. history. Originally filed in December 2020, the SEC’s case alleged that Ripple sold XRP as an unregistered security. Over the years, both sides secured partial wins, with Ripple celebrating a notable court victory in July 2023.
“Exceptional Circumstances” Justify Closure
The new filing explains that “exceptional circumstances” now justify lifting the court’s earlier injunction and approving the settlement. Both Ripple and the SEC argue that a resolution would prevent further appeals, conserve resources, and offer finality to the broader crypto sector.
#XRPCommunity #SECGov v. #Ripple #XRP The parties have renewed their request for an indicative ruling. pic.twitter.com/8uESP4eWa1
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) June 12, 2025
This request aligns with a broader shift at the SEC, which has recently moved to close several high-profile crypto cases as it rethinks its regulatory strategy for digital assets.
Crypto Industry Watches as Court Decision Looms
Should the judge approve the joint motion, Ripple will retain $75 million and pay a reduced penalty of $50 million. Both sides would also drop their appeals, bringing an end to one of the most closely watched legal battles in the digital asset space.
Also Read: Ripple vs SEC: U.S. SEC Moves to Block Nonparty Evidence Request in XRP Lawsuit
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