Ripple and the U.S. Securities and Exchange Commission (SEC) are nearing the resolution of their nearly five-year legal battle over the classification of XRP as a security. Both parties have jointly filed a motion in a New York court seeking a definitive ruling to conclude the case. The dispute began in 2020 when the SEC accused Ripple of raising $1.3 billion through the sale of XRP, alleging it constituted an unregistered securities offering. Under the proposed agreement, Ripple would pay $50 million in penalties to the SEC, while retaining $75 million. Although Judge Analisa Torres previously ruled partially in Ripple’s favor, stating that certain programmatic XRP sales did not violate securities laws, other institutional transactions were deemed securities violations, resulting in a $125 million fine. Recent developments include Ripple CEO Brad Garlinghouse’s assertion in March 2025 that the conflict was nearly resolved. However, Judge Torres rejected a request for a final judgment in May. With this new motion, both parties aim to avoid further litigation and appeals. The resolution could set a historic precedent for cryptocurrency regulation, especially amid leadership changes at the SEC following Gary Gensler’s departure. “Exceptional circumstances beyond the Transaction Agreement itself justify modifying the final judgment to facilitate settlement, bypass pending appeals, and conserve agency and party resources,” the court document states. This agreement marks a pivotal moment for Ripple and the broader crypto industry.
— new from BeInCrypto
