Breaking: SEC and Ripple Near Settlement in Landmark Crypto Legal Battle with Amended Filing
The crypto industry holds its breath as regulators and blockchain giants inch toward resolution.
After years of courtroom drama, the SEC and Ripple Labs have filed amended documents signaling a potential end to their bitter feud. No more ''security'' squabbles—just cold hard progress.
What changed? Both sides finally realized legal bills were outpacing XRP''s market cap. A rare moment of clarity in regulatory theater.
This could set precedent: either as a blueprint for compromise... or a cautionary tale about bureaucratic overreach stifling innovation. Place your bets.
Settlement momentum builds
The case stems from a December 2020 lawsuit alleging Ripple violated federal securities laws by selling XRP as an unregistered security.
After years of litigation, the court in July 2023 issued a summary judgment, ruling partially in favor of both parties. A final judgment in August 2024 enjoined Ripple and imposed a $125 million penalty, followed by a September 2024 order requiring Ripple to deposit 111% of that amount into escrow.
However, the SEC subsequently filed an appeal against the final judgement, causing Ripple to file a cross-appeal. The saga eventually culminated in both the firm and regulator filing a motion to settle the case in May.
The current motion reflects a broader effort to end all pending appeals and avoid further litigation. In the motion, both parties emphasized that “exceptional circumstances” now exist, warranting the court’s reconsideration of the penalty structure and the injunction’s continued validity.
Ripple’s MOVE to reduce its financial liability while closing the legal chapter aligns with a broader push within the industry to resolve regulatory uncertainty.
Meanwhile, the SEC’s willingness to accept a reduced fine, if approved, would signal a shift in its litigation strategy amid ongoing scrutiny of its enforcement-centric approach to crypto regulation.
The court has not yet ruled on the renewed joint request.
