- The SEC has submitted a joint settlement agreement with Ripple Labs, requesting Judge Torres to issue a ruling that may dissolve the existing injunction and finalise reduced penalties.
- Ripple’s financial penalty has been substantially reduced as the SEC recommends returning $75 million – subject to court approval.
- XRP jumped 8.9% to $2.38, driven by optimism surrounding the legal resolution, with trading volumes and pair performance also rising sharply.
In a significant development, the United States Securities and Exchange Commission (SEC) submitted its settlement agreement with Ripple Labs officially to Judge Analisa Torres of the Southern District of New York. The submission indicates another step into the protracted legal war between the regulator and the blockchain company. The joint filing asks the court to give an indicative ruling that may lead to the dissolution of a previously issued injunction and release escrowed penalty funds.
The announcement implies the possible end of a long legal battle that started in December 2020, when the SEC claimed that Ripple Labs conducted an unregistered securities sale through XRP sales. Should this settlement be confirmed, it could eliminate a main overhang to XRP’s price and sentiment in the market, which can open doors to new institutional interest and adoption.
SEC Proposes Reduced Penalty and Injunction Lift
A central detail within the agreement involves a significant reduction in Ripple’s financial penalty. The letter confirms the SEC has agreed to reduce the fine from $125 million to $50 million. The remaining $75 million will be returned to Ripple. Additionally, the SEC has asked the court to consider dissolving the injunction issued in the previous final judgement delivered in August 2023. The ability to alter the penalty and lift the injunction depends on whether the district court agrees to take back jurisdiction. This change would take place after the remand of the case by the Second Circuit.
The SEC has noted that it would not seek any modification of the summary judgement ruling delivered by Judge Torres in July 2023. Therefore, it is necessary for Judge Torres’s approval, not only to approve the settlement but also to rescind the injunction and modify the monetary penalty. This step remains critical before any legal closure can be achieved.
XRP rallies on SEC settlement optimism
If confirmed, this settlement would clear a significant XRP standout from its price and market sentiment, creating a path to renewed institutional interest and adoption. XRP’s price has increased by 8.9% to $2.38, while trading volume has increased by 19.29% to $5.48 billion as of May 9, 2025, according to CoinMarketCap data. This rapid increase indicates a bullish market reaction with other pairs such as XRP/BTC and XRP/ETH reporting increases of 3.8% and 10.2%, respectively.
