1 day ago
1
TLDR:
- Ripple and the SEC submitted a joint motion to modify the XRP judgment.
- The request includes lifting the XRP injunction and lowering the $125M penalty to $50M.
- Settlement depends entirely on Judge Torres’ approval; otherwise, appeals may resume.
- SEC also withdrew key DeFi and custody rules, signaling a broader regulatory pivot.
The legal battle between Ripple and the U.S. Securities and Exchange Commission appears to be entering its final chapter.
Both parties have jointly requested the Manhattan District Court to modify previous rulings, signaling a strong push toward resolution. Ripple and the SEC aim to dissolve the injunction on XRP and lower the civil penalty from $125 million to $50 million.
The remaining funds would be returned to Ripple, pending court approval. This latest development may halt further appeals and bring long-awaited clarity to the crypto industry.
Ripple and SEC Request Judgment Modification
In a joint motion, Ripple and the SEC asked Judge Analisa Torres to amend the original judgment. This includes lifting the permanent injunction on XRP and reducing Ripple’s financial penalty.
The move was described as necessary to enable settlement and avoid the time and cost of appeals.
Crypto legal expert Bill Morgan shared his view, noting that both sides relied on legal precedents to support their request. According to him, if the court denies the motion, it would block the conditions needed for the current settlement.
As a result, the appeal and cross-appeal processes would continue without resolution.
In the joint motion filed today by the SEC and Ripple to show exceptional circumstances, the parties rely on authorities that have held that exceptional circumstances exist where modification of a judgement is necessary to facilitate settlement that would obviate pending appeals… pic.twitter.com/MkcLT7C1e8
— bill morgan (@Belisarius2020) June 12, 2025
Despite repeated claims from industry influencers, the Ripple-SEC lawsuit remains unresolved. Morgan emphasized that the case is not closed and hinges on the court’s approval of the joint motion. Without it, the proposed settlement cannot be fulfilled, and litigation may resume.
The motion argues that “exceptional circumstances” exist, allowing the court to alter its decision to promote settlement. Ripple’s efforts to end the long-standing lawsuit depend entirely on this outcome, which could either bring the case to a close or prolong the legal uncertainty.
DeFi and Crypto Custody Rules Withdrawn
In another regulatory shift, the SEC has dropped key proposals introduced during Gary Gensler’s tenure.
These proposals previously targeted DeFi platforms and imposed strict custody requirements on crypto advisors. Their removal signals a broader regulatory reset and a potential shift in tone from the agency.
CryptoBusy reported that this policy reversal brings optimism to the crypto market.
🚨 BREAKING:
The SEC has officially dropped Gary Gensler–era proposals targeting DeFi and crypto custody!
Regulatory clarity just took a bullish turn:
• DeFi isn’t being boxed into TradFi frameworks
• Custody rules for crypto advisors removed
Bullish for the Bitcoin and… pic.twitter.com/F1M6LypyWQ
— CryptoBusy (@CryptoBusy) June 13, 2025
Projects like Ethereum, Solana, Arbitrum, and Injective are expected to benefit as regulatory clarity improves. Industry watchers now see the withdrawal as a green light for innovation in decentralized finance and digital asset infrastructure.
The joint request between Ripple and the SEC reflects growing urgency to avoid drawn-out legal proceedings. If granted, it could clear a path toward resolving one of crypto’s most-watched lawsuits.
Besides resolving XRP’s legal cloud, the broader regulatory changes suggest a new phase of cooperation may be taking shape.
English (US) ·