Ripple and SEC Push Court to Finalize XRP Case, Dissolve Final Injunction and Free Escrowed Funds
Ripple and the SEC have reignited efforts to end their dispute over XRP, aiming to dissolve the final injunction, unlock $125 million, and cement a long-awaited settlement.
The U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. jointly filed a motion on June 12 requesting that District Judge Analisa Torres issue an indicative ruling to dissolve a civil injunction and allow the distribution of over $125 million in escrowed penalty funds. The two parties are seeking relief under Rules 62.1 and 60(b) of the Federal Rules of Civil Procedure.
The motion states: “These parties seek a ruling as to whether, upon their joint motion … the Court would dissolve the injunction included in the Final Judgment in this matter … and order that the escrow account holding the $125,035,150 civil penalty imposed against Ripple by the Final Judgment be released and distributed with $50 million paid to the SEC in full satisfaction of that penalty and the remainder paid to Ripple.” The SEC and Ripple added:
If the Court issues the requested indicative ruling, the SEC and Ripple will move the United States Court of Appeals for the Second Circuit … for a limited remand to seek such relief from this Court.
The Second Circuit is involved because the case is on appeal, limiting the district court’s authority to modify its judgment. An indicative ruling would signal Judge Torres’ willingness to grant the relief, allowing the appellate court to temporarily return the case for that purpose.
Judge Torres had previously rejected a similar request on May 8, citing that the motion did not demonstrate “exceptional circumstances” as required for altering a final judgment. This time, the parties emphasized that the proposed resolution would avoid protracted litigation and support judicial efficiency. They further argued that the motion aligns with the SEC’s evolving policy under interim Chairman Mark Uyeda, noting the regulator’s recent decision to drop several crypto enforcement actions.
In their filing, the SEC and Ripple urged the Court to issue the ruling as a step toward finalizing a long-contested legal matter. They concluded:
The Court should grant the SEC’s and Ripple’s joint motion and issue an indicative ruling that the Court would, upon their motion … dissolve the injunction against Ripple and order the escrowed funds be distributed per the Settlement Agreement ($50 million to the SEC, the remainder to Ripple).
“Doing so would promote efficiency and the policy favoring settlements, obviate the need for additional litigation in this Court and the Court of Appeals, and be consistent with the SEC’s recent actions in other crypto registration cases,” the filing adds.
The underlying case centers on the SEC’s allegation that Ripple’s sale of XRP constituted an unregistered securities offering. This high-profile legal battle, which began in December 2020, has been a focal point in the debate over how U.S. securities laws apply to digital assets. A resolution would mark a pivotal moment for regulatory clarity concerning XRP and similar cryptocurrencies.