XRP: Ripple and SEC Refile Motion to Finalize Lawsuit

XRP continues to stay in the spotlight as Ripple and the U.S. Securities and Exchange Commission (SEC) have jointly refiled their motion for an indicative ruling, aiming to resolve their ongoing legal battle. This updated filing seeks to amend a previous court judgment by addressing the procedural concerns raised by Judge Analisa Torres.

Initially, Ripple and the SEC had requested an indicative ruling in May, hoping to adjust Judge Torres’ final judgment issued in August 2024. That ruling imposed a $125 million penalty on Ripple and permanently banned the company from continuing institutional sales of XRP. The motion also sought to release the entire fine from escrow—$50 million to be paid to the SEC and the remaining amount returned to Ripple under the terms of their earlier settlement.

However, on May 15, Judge Torres rejected this motion. She ruled that the request failed to demonstrate the ‘exceptional circumstances’ necessary for relief from a final judgment under Rule 62.1, thus halting the proposed settlement from moving forward at that time.

Undeterred, the parties have now refiled their motion, this time invoking Rule 60(b)(6)—a broader legal statute that permits courts to modify final rulings for compelling reasons. In their renewed request, Ripple and the SEC outlined several pressing factors that they argue meet the threshold for ‘exceptional circumstances.’

Settlement Grounds and Legal Justifications

Foremost among these is the existence of a formal settlement agreement. According to both parties, the proposed changes to the judgment are essential to bring the settlement into effect. Amending the ruling would facilitate the distribution and return of funds held in escrow as specified in the agreement.

Additionally, the refiled motion highlights the SEC’s notable shift in stance towards cryptocurrency enforcement under new leadership. As part of its evolving regulatory perspective, the agency has been more inclined to resolve cases outside of harsh litigation. This trend was evident when the SEC abruptly terminated other high-profile crypto cases, including lawsuits involving Coinbase and Consensys.

Drawing on this shift, Ripple and the SEC argue that continuing to litigate this case runs counter to the Commission’s current approach. Instead, resolving the Ripple case through a settlement would align with the regulator’s recent actions and conserve valuable judicial resources, especially in the already burdened Second Circuit court system.

Community Reaction and Possible Outcomes

This renewed motion has drawn immediate attention from the XRP community. Influential voices such as Ashley Prosper have speculated that Judge Torres could render a decision in the coming days. Meanwhile, legal experts like attorney Bill Morgan believe the judge is now more likely to approve the modification request, especially given the stronger case built around exceptional circumstances.

If Judge Torres grants this second motion, the next step would be a formal request to the Second Circuit to send the case back to her court for the revised judgment to be entered. This would effectively bring an end to the long-standing legal conflict that has shadowed Ripple and its XRP token for years, offering long-awaited clarity to investors and the broader cryptocurrency industry alike.

Related: Expert Advice: Sell XRP If You’re Confused

As this situation unfolds, all eyes remain on Judge Torres and the courtroom proceedings that will determine whether XRP can finally move forward free of legal uncertainty.