If the court grants the indicative ruling, the SEC and Ripple intend to petition the U.S. Court of Appeals for the Second Circuit to remand the case for formal resolution in the district court.
After years of litigation, the court in July 2023 issued a summary judgment, ruling partially in favor of both parties. A final judgment in August 2024 enjoined Ripple and imposed a $125 million penalty, followed by a September 2024 order requiring Ripple to deposit 111% of that amount into escrow.
The current motion reflects a broader effort to end all pending appeals and avoid further litigation. In the motion, both parties emphasized that “exceptional circumstances” now exist, warranting the court’s reconsideration of the penalty structure and the injunction’s continued validity.
Ripple’s move to reduce its financial liability while closing the legal chapter aligns with a broader push within the industry to resolve regulatory uncertainty.
Meanwhile, the SEC’s willingness to accept a reduced fine, if approved, would signal a shift in its litigation strategy amid ongoing scrutiny of its enforcement-centric approach to crypto regulation.
The court has not yet ruled on the renewed joint request.
