The legal standoff between the U.S. Securities and Exchange Commission (SEC) and Ripple may finally be nearing its end. On June 12, 2025, both parties filed a motion requesting the court to approve a revised SEC and Ripple Settlement Agreement, aiming to resolve one of the most significant crypto lawsuits in history.
SEC and Ripple Settlement Agreement: What Happened?
In a move that shocked the crypto industry, Ripple and the SEC jointly requested the Southern District Court of New York to approve a new settlement agreement. The revised deal seeks to reduce Ripple’s penalty from $125 million to $50 million. This motion also includes conditions to dissolve a previously issued injunction barring Ripple from further violations.
Under the new agreement:
- $75 million in escrow would be returned to Ripple.
- Ripple would pay the $50 million civil penalty.
- Both parties would drop their appeals if the court approves the agreement.
Legal Background of the SEC and Ripple Case
The lawsuit began in December 2020 when the SEC accused Ripple of conducting an unregistered securities offering through XRP sales. While Judge Analisa Torres later ruled that XRP was not a security in secondary markets, she found Ripple liable for institutional sales. A $125 million penalty and an injunction followed.
Now, citing Federal Rules 60(b) and 62.1, both Ripple and the SEC argue that “extraordinary circumstances” justify a revision of the original judgment and pave the way for final settlement through the SEC and Ripple Settlement Agreement.
Reaction from Stakeholders and the Market
Not all regulators are pleased. SEC Commissioner Caroline Crenshaw publicly opposed the motion, warning it might undermine regulatory authority and the precedent set by the original court ruling. Nonetheless, many in the crypto community welcome this move as a step toward legal clarity and market stability.
On the market side, XRP’s price initially dipped 3.5% following the news, reflecting investor caution amidst legal uncertainty. However, if the court approves the agreement, XRP could see renewed institutional interest and exchange support in the U.S.
What’s Next in the SEC and Ripple Settlement Agreement?
The court must now decide:
- Whether to amend the prior ruling to lift the injunction.
- Whether to accept the $50 million revised penalty.
- Whether the agreement fairly resolves all remaining legal concerns.
If approved, this SEC and Ripple Settlement Agreement would conclude nearly five years of litigation. Otherwise, the case could move to the Second Circuit Court of Appeals, prolonging the uncertainty.
Implications of the SEC and Ripple Settlement Agreement for the Crypto Industry
A finalized settlement would:
- Strengthen Ripple’s position ahead of potential IPO or ETF efforts.
- Clarify the legal status of XRP in the U.S.
- Serve as a possible benchmark for other crypto-related enforcement actions.
More broadly, the agreement signals a potential shift in how U.S. regulators are willing to resolve disputes with crypto firms, favoring compromise over extended courtroom battles.
Final Thoughts
The SEC and Ripple Settlement Agreement marks a pivotal moment not only for Ripple but for the entire cryptocurrency industry. After nearly five years of legal uncertainty, this proposed resolution could restore clarity, investor confidence, and regulatory direction for digital assets in the U.S. While the final approval still rests with the court, the willingness of both parties to compromise signals a maturing approach to crypto regulation, one where enforcement meets evolution. If accepted, this agreement may set the tone for future disputes between regulators and blockchain innovators.
