- Ripple and the SEC have jointly filed a new motion to dissolve the $125 million penalty and end their long-running legal battle, aiming to avoid a prolonged appeal.
- Former SEC official Marc Fagel suggests the move reflects both parties’ desire to close the case amid shifting regulatory views.
New joint motion seeks to end appeal and dissolve civil penalty in SEC vs. Ripple lawsuit
The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) may finally be inching toward a conclusion. A fresh development in the case has stirred significant attention in the crypto world—especially after a former SEC official broke his silence.
According to legal expert James K. Filan, both Ripple and the SEC have submitted a renewed joint motion for an indicative ruling, seeking to resolve the case without pushing the appeal further. In a notable shift, the parties are now requesting the Manhattan federal court to dissolve the existing injunction and release the $125 million civil penalty currently held in escrow.
This motion, filed under Federal Rules 60(b)(6) and 62.1, argues that “exceptional circumstances” now justify revisiting the final judgment. Ripple and the SEC appear to be aligned in wanting to avoid dragging the case through another year of appellate litigation—citing evolving regulatory attitudes and mutual desire for closure.
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Fagel Speaks Out: Motives Behind the Motion
Former SEC official Marc Fagel offered rare commentary on the case, taking to social media platform X (formerly Twitter) to explain the reasoning behind the motion. “They have an appeal pending. The whole point of this motion is the parties trying to avoid going forward with the appeal,” Fagel remarked.
The proposed resolution would split the $125 million escrowed penalty—$50 million to the SEC and $75 million returned to Ripple—signaling a compromise that could end years of legal uncertainty around XRP.
Ripple Eyes Clean Slate, XRP Sentiment Lifts
Filed initially in December 2020, the SEC’s lawsuit accused Ripple of selling $1.3 billion in unregistered securities via XRP. The latest development could pave the way for a court-approved settlement, potentially restoring investor confidence and strengthening Ripple’s position in the crypto ecosystem.
If approved, this motion could mark the final chapter in one of crypto’s most consequential legal battles—offering clarity, and perhaps, a bullish shift for XRP holders.
