Ripple and the U.S. Securities and Exchange Commission (SEC) Seek Court Approval to Resolve Legal Dispute
Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion in federal court seeking approval to resolve their nearly five-year legal dispute. The motion requests the release of $125 million currently held in escrow, with $50 million proposed for the SEC and $75 million to be returned to Ripple.
Filed in the U.S. District Court for the Southern District of New York, the motion cites “exceptional circumstances” under Federal Rules of Civil Procedure 60(b)(6) and 62.1 to justify modifying the final judgment. Both parties argue that settling the case would avoid further litigation and bring efficiency to the process.
Court Yet to Approve Ripple-SEC $125M Deal
The SEC’s original complaint in December 2020 accused Ripple of conducting $1.3 billion in unregistered securities sales through XRP. In July 2023, Judge Analisa Torres ruled that Ripple’s programmatic XRP sales did not violate securities laws due to the nature of their distribution. However, she held that direct sales to institutional investors qualified as securities transactions, triggering a $125 million penalty. This penalty is now the subject of the joint motion. Both parties are requesting that the court lift the permanent injunction on XRP sales and approve the $50 million settlement to the SEC. Ripple would receive the remaining $75 million.
Despite public statements suggesting closure, the case remains unresolved. In a prior ruling last month, Judge Torres declined to issue an indicative statement supporting a settlement. She stated that the parties had not met the high standard required under Rule 60 to vacate the injunction.
Ripple Cites Policy Reversals to Justify Settlement Motion
Ripple and the SEC argue that recent regulatory developments justify revisiting the judgment. The filing references changes in SEC enforcement priorities following the departure of former Chair Gary Gensler in January 2025. Under the new administration, the agency has withdrawn several enforcement actions and discontinued proposals targeting DeFi and crypto custodians.
“The motion asserts that the SEC’s recent changes in regulatory approach meet the threshold of ‘exceptional circumstances’ required to modify the court’s prior ruling,” the filing states. Legal analysts, including attorney Bill Morgan, noted that the settlement cannot proceed without court approval. If the motion is denied, the appeals process will remain active and unresolved.
Price Rejection at $2.30 Puts XRP Bulls on Alert
XRP is trading near $2.15 after failing to reclaim the $2.30 resistance zone earlier this week. The token attempted a breakout above the 0.786 Fibonacci retracement level at $2.18, but the move was rejected, leading to a pullback.
The 4-hour chart shows XRP struggling below a confluence of key resistance levels, including the 20, 50, 100, and 200-period EMAs, which are currently clustered between $2.21 and $2.26. These EMAs form a short-term bearish barrier, indicating that sellers remain active.
The Relative Strength Index (RSI) is neutral around 48, suggesting consolidation rather than momentum in either direction. Trading volume remains below the recent average. This implies hesitation among market participants as the legal outcome remains uncertain.
Support lies near $2.08, which has been tested twice in the past week. A breakdown below this level could expose XRP to further losses toward the psychological support at $2.00, followed by $1.88. Conversely, a confirmed breakout above the $2.26 resistance zone — particularly on strong volume — could open the door for a retest of $2.39 (previous swing high) and the 2.618 Fibonacci extension at $2.52.