Ripple and SEC Move Toward Resolution with $125M Deal

In a significant development, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion in a Manhattan District Court on June 12, 2025, to dissolve a 2024 injunction and split a $125 million civil penalty held in escrow.

The proposal allocates $50 million to the SEC, with the remaining funds returned to Ripple, signaling a potential end to their four-year legal battle over unregistered XRP sales, which began in December 2020.

This latest move follows Judge Analisa Torres’ August 2024 ruling, which imposed a $125 million penalty on Ripple—far less than the SEC’s initial $2 billion demand. The judge rejected disgorgement, citing no direct investor harm, a precedent reinforced by the SEC v. LBRY case (2023), where a similar penalty was upheld without disgorgement. The injunction, however, had restricted Ripple’s ability to sell XRP, impacting its On-Demand Liquidity (ODL) solution, a key driver of XRP’s utility.

The joint motion reflects a softening SEC stance under new leadership, evidenced by recent dismissals of enforcement actions against Coinbase and Binance. The filing argues “exceptional circumstances”—including a settlement intent, evolving SEC crypto policy, and a desire to avoid further litigation—justify modifying the final judgment. A status report is due by June 16, 2025, which could shape the outcome.

For the XRP community, this is a pivotal moment. Despite a 4% price dip to $2.18 on Thursday amid market volatility, technical indicators like the daily MACD suggest bullish potential in the second half of 2025. However, a sustained drop below $2 could signal further declines. The resolution could stabilize XRP, though conservative institutions may remain cautious due to the lingering injunction’s effects.

Legal analysts, including former SEC attorney Marc Fagel, note Judge Torres has no immediate ruling pending, leaving the decision to her discretion. If approved, this could mark a broader shift in crypto regulation, especially with pending legislation like the GENIUS Act. For now, the crypto world watches as Ripple and the SEC inch closer to closing a chapter that has defined XRP’s tumultuous journey.

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