SEC and Ripple File Motion To Dissolve Injunction In XRP Lawsuit

Ripple Labs and the Securities and Exchange Commission (SEC) have jointly filed a motion with the court. Journalist Eleanor Terrett reported on X that the two parties are requesting an indicative ruling to validate their proposed settlement agreement, with the filing taking place in a Manhattan court.

The renewed motion seeks to persuade the presiding judge to dissolve the existing injunction and authorize the release of the monetary judgment currently held in escrow.

SEC and Ripple Seek Truce

The primary objectives are to resolve the order involved in their current legal dispute and to vacate the $125 million penalty imposed against Ripple, which is currently in a separate account.

Under the proposed deal, the SEC would receive $50 million, while Ripple would retain the remainder. This suggests that both parties are working to reach a final agreement, thereby resolving the appeals that have characterized the case.

Notably, the XRP lawsuit faced a key deadline of June 16, when the SEC was required to file a report regarding a previous request to the court.

According to the filing to Judge Analisa Torres, Ripple and the SEC are using “special reasons” to justify the request. These reasons include the settlement agreement, the SEC’s evolving view on cryptocurrency regulations, and the shared desire to avoid more expensive and lengthy legal proceedings.

Initial Lawsuit Settlement

CoinTab reported that Ripple Labs has decided to end its appeal against the Securities and Exchange Commission (SEC) with an agreement that lowers Ripple’s original fine from $125 million to $50 million.

This deal follows the SEC’s decision to withdraw its appeal in the legal dispute with the payment network. As a result, Ripple has also agreed to withdraw its appeal and pay a reduced fine. The remaining $75 million will go back to the company.

Ripple’s Chief Legal Officer, Stuart Alderoty, states that the SEC will request the court to vacate the order requiring the company to register future securities sales.

Moreover, Ripple reached this point after years of tough legal battles. In 2020, the SEC claimed that the payment company sold unregistered securities through its XRP sales. This resulted in a lengthy legal process that spanned over four years.

However, recently, Legal expert Fred Rispoli expressed his doubts about the latest filing on X, citing Judge Torres’s apparent dissatisfaction with her previous ruling. He suggested that the arguments from both sides are not convincing enough, especially their limited discussion of other SEC dismissals and their “small mention of the SEC crypto task force.