The ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs Inc. is reaching a critical point, with both parties presenting a renewed effort to expedite a resolution. In correspondence dated June 12, 2025, they have petitioned Judge Analisa Torres for an “indicative ruling” aimed at lifting the injunction that was placed on Ripple in August 2024. This move could signal a significant turning point in the four-and-a-half-year saga surrounding the XRP cryptocurrency.

Potential Conclusion of the XRP Case

The joint motion, styled under Federal Rules of Civil Procedure 62.1 and 60(b)(6), was necessitated after an earlier request was denied due to insufficient demonstration of “exceptional circumstances.” This renewed filing articulates substantial reasons for the modification of the judgment—emphasizing not only the benefits of settlement but also the efficient use of judicial resources amidst the SEC’s evolving stance on cryptocurrency enforcement.

If this proposal is accepted, Ripple intends to pay $50 million as a penalty, which would settle the SEC’s claims. In return, approximately $75 million plus any accrued interest would be returned to Ripple. Crucially, the permanent injunction, which stemmed from Section 5 violations of the Securities Act, would be lifted. The parties clarified that this agreement is essential for any settlement to progress, promising to seek a limited remand should the court grant the desired relief.

This legal drama traces back to a pivotal summary judgment issued by Judge Torres on July 13, 2023. In her ruling, while the SEC’s assertions regarding Ripple’s institutional XRP sales were upheld, she concluded that sales on exchanges did not constitute investment contracts. Following the dismissal of the SEC’s claims against Ripple’s executives, the court in August 2024 imposed a $125 million penalty and instituted a ban on Ripple’s unregistered XRP distributions.

The appeals filed in October 2024 were later put on hold in April 2025 to allow for a possible settlement. However, a similar motion for an indicative ruling was rejected due to the lack of clear justification for meeting the necessary legal standard. The current submission significantly references Second Circuit decisions that demonstrate a court’s ability to modify its own judgments to facilitate settlements and judicial efficiencies.

The parties argue that granting this motion will not disrupt public interests because the core elements of Judge Torres’s summary judgment will remain unaffected and continue to bind them. They maintain that any changes involve only the penalties and the scope of injunctive relief, which are seen as minor adjustments in the unique context of this case.

Looking Ahead

Judge Torres is now tasked with evaluating whether the arguments presented satisfy the stringent requirements of Rule 60(b)(6). Should she indicate that she is amenable to the adjustment, both the SEC and Ripple will petition the Second Circuit for a remand for a revised judgment, allowing for the voluntary dismissal of both parties’ appeals.

Conversely, if the court declines this motion, the case will revert to its appellate pathway, prolonging this intricate legal journey that commenced with the SEC’s lawsuit on December 22, 2020. At this juncture, the decision on the injunction and the disposition of $75 million in escrow significantly influences Ripple’s operational landscape, hinging on whether Judge Torres is prepared to acknowledge that the “exceptional circumstances” standard has been satisfied after five years of litigation.

As of the latest update, XRP is valued at $2.11.