Ripple, SEC Seek Closure With Joint Motion to End Case and Release $125M Penalty

In a move to officially end their years-long legal dispute, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion in Manhattan federal court seeking to dissolve the remaining injunction in their case and release the $125 million civil penalty currently held in escrow.

According to the filing, the proposed distribution would allocate $50 million to the SEC, while $75 million would be returned to Ripple. The joint motion invokes Federal Rules 60(b)(6) and 62.1, citing “exceptional circumstances” — including shifting regulatory sentiment and a mutual interest in avoiding further appeals — as grounds to reopen the final judgment.

The motion also aims to preempt ongoing appeals in the Second Circuit, effectively avoiding additional legal proceedings and potential delays into 2026.

Originally filed in 2020, the SEC’s case alleged Ripple raised $1.3 billion through unregistered XRP sales. If the court approves the motion, it would bring a definitive end to one of the crypto industry’s most high-profile enforcement actions and lift a key overhang on the XRP token, which has recently seen growing institutional demand.