XRP Breaks Free as Ripple and SEC Want $125M Lawsuit Closed for Good

The lawsuit that’s shadowed Ripple for years may finally be cracking open. In a new filing, the SEC and Ripple jointly asked a Manhattan district court to dissolve the existing injunction in their case—and release the $125 million civil penalty sitting in escrow.

They want it split: $50 million goes to the SEC. The remaining $75 million goes back to Ripple.

This isn’t just a procedural cleanup. It’s a coordinated legal strike that says, without saying it: the war is over. XRP (XRP-USD) is finally breaking free from one of the most defining crypto court cases in history.

The SEC Softens Its Stance, Ripple Goes for the Finish

The timing isn’t random. The SEC’s own shifting internal policies on digital assets are a key reason this motion even exists. Ripple is arguing the landscape has changed, the penalty terms were overbroad, and it’s time to wrap this up.

And the SEC is on board. They’ve asked the judge to reconsider her original decision under Rule 60(b)—a rare legal mechanism that requires showing extraordinary circumstances. Both parties argue that’s exactly what this is: a changed regulatory climate, new facts, and a settled penalty agreement.

Translation: they want the judge to fast-track this closure.

Ripple Fights to Unlock $125M

Ripple would walk away with $75 million. That’s dry powder for expansion, legal wins, or ecosystem support—right as XRPL adoption accelerates. More importantly, XRP’s years-long legal cloud would clear. No more wondering about appeals. No more SEC headwinds. No more stigma.

This isn’t just about one court case. It’s about freeing XRP to be treated like the institutional asset Ripple always said it was.

But the Judge Could Still Say No

Judge Torres already denied an earlier request in May. Some lawyers think she might do it again.

Attorney Fred Rispoli wasn’t impressed by the new filing, saying bluntly, “I don’t like this.” Others, like Sherrie, called it a slight improvement—but warned the judge could still push back.

So don’t call it over just yet. But if the motion is approved, this becomes the official turning point in the Ripple-SEC saga.

At the time of writing, XRP is sitting at $2.13.