Ripple SEC Case Update – May 9, 2025: Final Settlement Nears as Judge Torres Awaits Confirmation

Blog Article

The long-running SEC vs. Ripple case appears to be entering its final stage, with the SEC signaling readiness to finalize a settlement. Judge Analisa Torres is expected to review the agreement as the appeals process is temporarily paused.

Key Points

SEC proposes a reduced $50 million penalty, down from the initial $125 million fine

Judge Torres likely to reassert jurisdiction amid the halted appeals

Both parties accept the July 2023 ruling splitting XRP’s institutional and retail sales classification

Proposed settlement includes a request to lift the injunction restricting Ripple’s U.S. XRP sales

Settlement Progress and Legal Developments

In a significant update, the SEC has filed a formal notice to Judge Torres confirming progress toward a settlement with Ripple Labs. This move follows the U.S. Court of Appeals for the Second Circuit’s decision to pause ongoing appeals, clearing the path for resolution.

The SEC’s filing goes beyond acknowledgment — it seeks guidance from Judge Torres on how she might rule if the case returns to her court, signaling growing alignment between both sides.

Reduced Fine and Injunction Relief

The proposed deal calls for Ripple to pay a $50 million penalty, a substantial reduction from the originally sought $125 million. Details on the disposition of the remaining amount remain confidential until the settlement is finalized.

A key part of the agreement is the SEC’s request to lift the injunction imposed in August 2024, which had limited Ripple’s institutional XRP sales and token movement in U.S. markets.

Once the settlement is formally submitted, both parties plan to withdraw their appeals, effectively ending a legal battle that has lasted more than three years.

Acceptance of the 2023 Ruling

Crucially, neither Ripple nor the SEC disputes Judge Torres’ landmark July 2023 decision. That ruling differentiated XRP’s direct institutional sales—which were deemed unregistered securities—from programmatic and secondary market sales, which were not.

This partial win for Ripple has set an important precedent for token issuers and remains central to the settlement framework.

Market and Industry Reactions

XRP’s price held steady amid the news, with experts noting that a finalized settlement could bring clearer regulatory guidance across the copyright space. This clarity is expected to benefit projects navigating token sales and compliance.

One legal expert commented, “Ripple and the SEC nearing resolution sends a clear signal to the market. The Torres ruling is shaping future enforcement approaches.”

Looking Ahead

The SEC’s move to finalize terms with Ripple marks a pivotal moment in copyright regulation. With a reduced fine, lifted sanctions, and mutual respect for prior rulings, both parties seem poised to move forward.

All attention now focuses on Judge Torres, whose upcoming decision could close one of the most closely watched legal battles in digital asset history — potentially paving the way for a more consistent regulatory environment.

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