Ripple SEC Case Update – May 9, 2025: Final Settlement in Sight as Judge Torres Awaits Confirmation
Key Takeaways
- SEC signals intent to finalize its settlement with Ripple, marking a major development in the multi-year legal saga
- A $50M penalty is proposed, significantly reduced from the original $125M fine
- Judge Analisa Torres is expected to reassert jurisdiction as the appeals process is paused
- No party is contesting the July 2023 ruling that split XRP’s institutional and retail sales classification
- A request to lift the injunction on Ripple is part of the proposed agreement
Ripple vs. SEC Enters Final Phase as Judge Torres Asked to Weigh In
In what could be the most definitive chapter yet in the SEC vs. Ripple legal battle, the U.S. Securities and Exchange Commission has submitted a formal notice to Judge Analisa Torres confirming that a settlement agreement is now in motion. The move comes just days after the U.S. Court of Appeals for the Second Circuit decided to pause the ongoing appeal process, offering both sides a clear path to finalize the deal.
The SEC’s recent court filing doesn’t just acknowledge progress — it proactively requests guidance from the judge on how she would rule, should the case be returned to her courtroom. This signals growing consensus between the agency and Ripple Labs and clears the way for a full procedural wrap-up.
$50M Fine Proposed, Injunction May Be Lifted
According to the updated proposal, Ripple’s penalty will be reduced from $125 million to $50 million, pending court approval. The remaining amount may be refunded or reassigned, though details remain sealed until the final draft of the settlement is entered into the record.
As part of the agreement, the SEC is requesting that the prior injunction imposed on Ripple in August 2024 be lifted. That injunction had restricted certain aspects of Ripple’s institutional XRP sales and token movement in U.S. markets.
The final version of the deal — once re-submitted in the district court — would also authorize both parties to withdraw their respective appeals, fully ending litigation efforts that have spanned over three years.
No Challenges to Torres’ 2023 XRP Ruling
Importantly, neither Ripple nor the SEC is contesting Judge Torres’ landmark July 2023 decision, which found that XRP’s direct institutional sales were unregistered securities but that programmatic sales and secondary market activity did not fall under securities law violations.
That decision, hailed by many in the industry as a partial win for Ripple and a significant precedent for other token issuers, appears to remain the judicial cornerstone of this case’s resolution.
Market Impact and Industry Reaction
Though XRP remained relatively stable following the news, analysts suggest that a finalized deal could provide regulatory clarity across the broader crypto market — particularly for projects navigating token sales and fundraising mechanisms.
“The fact that Ripple and the SEC are finally approaching resolution sets a tone for future enforcement cases,” noted one attorney familiar with the matter. “The Torres ruling is becoming a de facto blueprint.”
Final Thoughts
The SEC’s decision to return to district court and formalize its agreement with Ripple marks the potential end of one of crypto’s most closely watched enforcement actions. The reduced fine, the lifting of sanctions, and the mutual respect of previous rulings indicate that both sides may be ready to move forward — and that the regulatory landscape for tokenized assets may soon shift toward greater consistency.
All eyes now turn to Judge Torres, whose next ruling could officially close the books on a legal battle that reshaped how the SEC approaches digital asset regulation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
