Ripple and SEC Renew Motion to End XRP Lawsuit by Cutting $125 Million Fine to $50 Million and Lifting Sales Ban — What Happens If the Court Says No Again?

Ripple and SEC Renew Effort to End Legal Battle with Revised $50 Million Settlement

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have joined forces once again to request a court’s approval to lift an injunction and reduce a civil penalty, as both sides aim to bring closure to their protracted legal dispute over XRP.

The request, filed on 12 June, seeks to dissolve the court-imposed ban on Ripple’s XRP sales to institutional investors and to slash the previously imposed $125 million fine down to $50 million.

Why Is the Injunction Still Blocking Ripple’s Progress

The injunction, imposed as part of a 2024 Final Judgment, prevents Ripple from selling XRP to institutional investors.

It has effectively blocked Ripple from pursuing an initial public offering (IPO) for the next four years, as explained by former SEC lawyer James Farrell.

He noted,

“Ripple is practically precluded from an IPO for 4 more years because of the injunction.”

This restriction has weighed heavily on the company’s ambitions, especially as other crypto firms like Circle and Kraken have moved forward with their own IPO plans.

The joint motion, filed before Judge Analisa Torres in the Southern District of New York, requests an ‘indicative ruling’ to dissolve the injunction.

If granted, it would mark a significant step in removing the legal barriers Ripple faces.

The SEC and Ripple propose that $50 million be paid as a civil penalty while the remaining $75 million of the original $125 million fine be returned to Ripple.

What Stands Behind the Renewed Request

This is not the first time the two parties have sought to modify the court’s ruling.

A previous attempt was denied in May for failing to meet the requirement of “exceptional circumstances” under Federal Rule of Civil Procedure 60(b).

The current filing emphasizes that such exceptional circumstances now exist, arguing that adjusting the penalty and lifting the injunction are necessary to facilitate a final settlement and avoid prolonged appeals.

Pro-crypto attorney Bill Morgan pointed out,

Morgan also cautioned that,

“If the motion is not allowed and the settlement agreement is not varied or a new settlement agreement entered, then there is no settlement and the Appeal and Cross-appeal would continue.”

Will The June 16 Deadline Affect The Case’s Direction

The U.S. Court of Appeals for the Second Circuit set a deadline for 16 June for the SEC to report on the settlement’s progress.

Lawyers expect Ripple and the SEC to submit a revised motion under Rule 60 ahead of this deadline.

Legal expert Fred Rispoli shared on X that filing this motion could grant the court an additional 60 days before the next status update is required, potentially buying more time to negotiate.

Rispoli explained,

“If they file with Torres before the status report, then solid chance 2nd Cir gives another 60 days for another status report.”

However, he also noted there is no new positive development to report to the appeals court at this time.

What’s Next If The Court Rejects The Request

Should Judge Torres deny the motion once more, Ripple is expected to continue its cross-appeal against the SEC’s final judgement.

Sherry, a legal analyst, suggested that while another filing for an indicative ruling is likely, Ripple may press on with litigation if no relief is granted.

The ongoing back-and-forth highlights the stakes involved—not just for Ripple and the SEC, but for the broader crypto industry watching how regulatory disputes like this are resolved.

The case remains far from closed, despite optimistic claims from some quarters.

Can This Settlement Ease Regulatory Uncertainty?

Ripple’s effort to lower its financial penalty while ending the injunction aligns with wider industry calls for regulatory clarity.

On the SEC’s side, accepting a reduced penalty might reflect a shift in its enforcement approach amid criticism of its aggressive legal tactics toward crypto companies.

As the clock ticks down to the court’s next procedural update, XRP holders and market watchers remain on alert.

The outcome could influence XRP’s market behaviour and Ripple’s future in the U.S. financial landscape.

The court has yet to rule on this latest joint motion.