In a significant development, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion in a Manhattan District Court to lift an injunction and distribute a $125 million civil penalty.
Joint Motion by Ripple and SEC
On June 12, 2025, Ripple and the SEC filed a motion in the Manhattan District Court requesting the dissolution of the injunction placed on Ripple. According to the proposal, $50 million would be allocated to the SEC, with the remaining funds returning to Ripple, potentially indicating an end to their four-year legal battle over unregistered sales of XRP, which began in December 2020.
Overview of Legal Proceedings
This move follows Judge Analisa Torres' ruling in August 2024, which imposed a $125 million penalty on Ripple — significantly less than the SEC's original demand of $2 billion. The judge dismissed disgorgement, citing no direct investor harm, a precedent reinforced by the SEC v. LBRY case in 2023. However, the injunction has restricted Ripple's ability to sell XRP, adversely affecting their On-Demand Liquidity (ODL) solution, a key factor in XRP's utility.
Impact on XRP Community
For the XRP community, this is a pivotal moment. Despite a 4% price dip to $2.18 on Thursday amid market volatility, technical indicators such as the MACD suggest bullish potential in the second half of 2025. Nonetheless, a sustained drop below $2 could indicate further declines. The resolution of this matter could stabilize XRP, although conservative institutions may remain cautious due to the ongoing injunction.
Legal analysts, including former SEC attorney Marc Fagel, note that Judge Torres has no immediate ruling pending, leaving the decision to her discretion. If approved, this could mark a broader shift in crypto regulation, especially with pending legislation like the GENIUS Act.
