The SEC and Ripple have taken steps to end one of the longest crypto litigations, jointly filing a motion in federal court in Manhattan to dissolve the injunction in their case and release the $125 million civil penalty currently held in escrow.

According to the proposal, $50 million would be allocated to the SEC, while the remaining $75 million would be returned to Ripple.

The motion, filed under Federal Rules 60(b)(6) and 62.1, cites 'extraordinary circumstances' as grounds to reopen the final judgment, pointing to changes in the SEC's regulatory attitudes and a shared desire between the parties to avoid further litigation.

The measure also aims to resolve pending appeals in the Second Circuit and avoid prolonging the case for another year of legal disputes.

The case, initially opened in 2020, accused Ripple of conducting unregistered sales of XRP worth $1.3 billion. A final settlement approved by the court would remove any remaining legal uncertainty, further boosting the already in-demand token XRP.