Ripple, SEC Seek Court Approval to End $125M XRP Lawsuit

After more than four years of litigation, Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion to settle the long-running lawsuit by requesting the U.S. District Court to lift the injunction on Ripple's XRP sales and reduce the penalty from $125 million to $50 million, with the remaining $75 million to be returned to Ripple. Prominent attorney John E. Deaton estimates a 70% chance that Judge Analisa Torres will approve the motion, although he criticizes the filing for missing opportunities to persuade the judge by not addressing the SEC's previous aggressive enforcement under former Chair Gary Gensler, which has been rolled back under current leadership. Deaton also notes the filing did not sufficiently argue why Ripple deserves relief from the injunction that places it at a disadvantage compared to competitors now enjoying regulatory clarity. Previously, Judge Torres ruled that XRP sales to institutional investors violated securities laws but sales to retail investors did not. Deaton expected the SEC to acknowledge its harsh past stance on crypto and to cite pending crypto legislation as exceptional circumstances justifying the motion, but these points were absent. The case’s resolution would end a saga that has significantly impacted crypto regulation and market dynamics.