Ripple and SEC File Motion to End Lawsuit

Ripple Labs and the SEC jointly filed a motion on June 12, 2025, in a Manhattan court to settle an ongoing lawsuit concerning XRP.

In April 2025, Ripple and the SEC paused appeals to negotiate a resolution in their legal dispute. The lawsuit, initiated in 2020 by the SEC, accused Ripple of unregistered XRP token sales worth $1.3 billion. A partial judgment earlier led to a $125 million penalty. The judicial proceedings, primarily monitored by Judge Analisa Torres, have been crucial in shaping the current settlement attempts.

“We are entering a new era in which flexibility in regulatory compliance is essential for innovation,” stated Judge Analisa Torres, lending weight to the motivations driving the settlement.

Ripple and the SEC filed this joint motion citing “exceptional circumstances” and “changing regulatory attitudes.” They propose splitting the escrowed penalty, with $50 million going to the SEC. The remaining $75 million is intended to be returned to Ripple upon court approval. This division reflects significant motivations to conclude litigation and alleviate ongoing tensions. Ripple CEO Brad Garlinghouse and other executives have remained officially silent, underscoring the motion’s procedural nature.

The court filing could influence XRP’s market position by removing legal uncertainties that have loomed over the token. A favorable settlement would enhance XRP’s liquidity and market confidence. Market analysts observe a potential increase in trading volumes and a boost in sentiment for digital assets broadly.

The SEC’s past actions against other tokens, like EOS, resulted in restrictions for certain stakeholders. Ripple’s case parallels these in regulatory impact, especially following its partial win in 2023. Observers regard this settlement as a milestone for Ripple and XRP, highlighting shifting U.S. regulatory landscapes.

Industry reactions acknowledge the mutual benefits in avoiding prolonged litigation. The case’s conclusion could embolden other crypto projects seeking regulatory clarity. Historical sentiments and ongoing market responses reflect cautious optimism, as both parties opt for resolution over extended appeals.