In a bid to draw a close on one of the most protracted disputes in the cryptocurrency arena, Ripple and the SEC have teamed up to submit a joint request to a federal court in Manhattan. Their aim: to lift the injunction that’s been in place and unfreeze the $125 million penalty money currently tied up in escrow.
The suggested settlement splits the funds, earmarking $50 million for the SEC, while the balance of $75 million is set to revert back to Ripple’s coffers.
Legal Maneuvers and Changing Winds
Invoking Federal Rules 60(b)(6) and 62.1, the motion highlights “exceptional circumstances” justifying a reopening of the prior judgment. This is largely due to shifting regulatory perspectives within the SEC, paired with a mutual intention on both sides to sidestep further courtroom battles.
The strategy also targets nipping outstanding appeals in the Second Circuit in the bud, thereby steering clear of dragging this legal saga into yet another year of procedural skirmishing.
A Glance Back: The Ripple vs. SEC Saga
When the dust first settled in 2020, Ripple faced allegations that its unregistered sales of XRP had amassed a whopping $1.3 billion. Should a court ratify the proposed settlement, it would effectively sweep away lingering legal ambiguities—giving a fresh tailwind to an already sought-after digital asset.
By mid-2023, XRP ranked among the top 10 cryptocurrencies by market capitalization, with a daily trading volume consistently exceeding hundreds of millions USD, underscoring its entrenched position within the crypto ecosystem.