Ripple and the U.S. Securities and Exchange Commission (SEC) took a significant step toward closing their prolonged legal battle by submitting a joint motion on Thursday. The request seeks court approval to release $125 million held in escrow to cover court-ordered settlement costs.
Key Details of the Joint Motion
- $50 million will be transferred to the SEC as civil penalties against Ripple
- $75 million will be returned to Ripple upon court approval
Both parties emphasized this solution would:
- Conserve judicial resources
- Avoid needing appellate court rulings
- Eliminate remand procedures
- Finally conclude the 4.5-year litigation
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The Ripple-SEC Case Timeline
2023 Pivotal Ruling
In July 2023, Judge Analisa Torres delivered a mixed verdict:
- Secondary sales of XRP tokens did not qualify as securities
- Institutional sales to investors did constitute securities offerings
2024 Developments
- August 2024: Ripple ordered to pay $125M penalty
- October 2024: SEC filed appeal (later withdrawn)
- March 2025: SEC dropped appeal, marking the case's effective conclusion
Industry Implications
This case has been a watershed moment for U.S. crypto regulation. Its resolution provides:
- Regulatory clarity on token classification
- Symbolic victory for industry legitimacy
- Precedent for future SEC enforcement actions
FAQs
Q: Why did the SEC abandon its appeal?
A: While unconfirmed, legal analysts suggest political timing (near 2024 elections) and strategic reassessment of litigation risks influenced the decision.
Q: How does this affect XRP's legal status?
A: Judge Torres' 2023 ruling established that XRP itself isn't inherently a security, but institutional sales may still face scrutiny.
Q: What's next for Ripple?
A: The company retains $75M from the settlement and can now focus on product development and global expansion.
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Conclusion
With the escrow release motion filed and appeals withdrawn, this landmark case appears headed for final resolution. The outcome strengthens Ripple's position while leaving open questions about how regulators will approach other digital assets.