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.
NEW: The @SECGov and @Ripple have jointly requested a Manhattan District court to dissolve the injunction in their ongoing case and release the $125 million civil penalty held in escrow.
They’re proposing that $50 million be paid to the SEC, with the remaining funds returned… pic.twitter.com/UopQuQNG5q
— Eleanor Terrett (@EleanorTerrett) June 12, 2025
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.
JUST IN: The SEC and Ripple have filed for a joint motion to dissolve the injunction in their ongoing case.
They also proposed to split the $125M civil penalty, with $50M going to SEC and $75M to Ripple. pic.twitter.com/7l5TRcHz3N
— Cointelegraph (@Cointelegraph) June 13, 2025
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.
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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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