Ripple and SEC Move Toward $125M Settlement, Signaling Possible End to Legal Battle

Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly requested court approval for a proposed settlement that could mark the end of their years-long legal battle. According to Fox Business journalist Eleanor Terrett, both parties filed a motion with the Manhattan District Court to approve an injunction and release a $125 million civil penalty currently held in escrow. The settlement proposal includes a $50 million payment to the SEC, while the remaining $75 million would be returned to Ripple.

Filed under Case 1:20-cv-10832-AT-SN, this joint request is seen as a major shift in the long-standing conflict and may prevent further appeals or litigation. Ripple, which faced SEC accusations of selling XRP as an unregistered security, could now redirect freed funds into innovation and global expansion of its blockchain payment solutions.

XRP, Ripple’s native token, has seen recent price declines amid the legal uncertainty. However, news of a potential settlement may boost investor confidence and drive market recovery. A finalized agreement could also set a precedent for how crypto firms approach regulatory disputes.

Eleanor Terrett also noted that the court's decision might reflect recent shifts in SEC policy, a desire to avoid prolonged litigation, and the broader evolution of crypto regulation. Although Judge Analisa Torres previously rejected a similar proposal in May, the new filing cites exceptional circumstances, including improved cooperation and changing regulatory priorities.

If approved, this development could influence how future crypto-related enforcement cases are handled, potentially creating a new framework for resolving disputes between blockchain companies and regulators. It also signals increasing maturity in the crypto industry's relationship with U.S. financial authorities.