XRP: Ripple and SEC Seek Release of $125M Escrow Funds

XRP is once again making headlines as Ripple and the U.S. Securities and Exchange Commission (SEC) have filed a joint motion to release $125 million held in escrow, marking what could be the final step in their long-standing legal dispute.

In a significant move this week, Ripple and the SEC submitted a joint request to a federal court in Manhattan to lift the existing injunction and allow for the disbursement of escrowed funds. The proposed breakdown of the funds designates $50 million to the SEC while granting the remaining $75 million back to Ripple. This distribution is part of an effort to bring closure to a conflict that has persisted since 2020.

This legal motion was filed under Federal Rules of Civil Procedure 60(b)(6) and Rule 62.1, invoking “exceptional circumstances” to justify reopening the final judgment. Specifically, the motion refers to evolving regulatory perspectives at the SEC and a mutual interest between the two entities to avoid further legal entanglements that could drag on for another year.

The original lawsuit, filed nearly five years ago, alleged that Ripple had violated U.S. securities laws by selling $1.3 billion worth of XRP in unregistered transactions. Throughout the legal battle, the case has had widespread implications for the broader cryptocurrency market and particularly for how the SEC interprets digital asset offerings.

With the courts now potentially approving this agreement, XRP could benefit from a reduced cloud of regulatory uncertainty, creating a more favorable environment for further adoption and market integration. Given the SEC’s recent shifts in its stance and Ripple’s commitment to moving forward, the resolution is poised to be beneficial for both parties.

Notably, this joint motion also aims to put an end to any ongoing appeals in the Second Circuit, reflecting a shared intention to avoid extended courtroom activity. If successful, it would symbolize a turning point in how crypto-related legal disputes are managed, especially those involving major tokens like XRP.

This final development could bolster investor confidence, potentially impacting both market sentiment and Ripple’s strategic partnerships. XRP has remained one of the most watched digital assets in the industry, and resolving these long-standing legal challenges will likely elevate its reputation and reliability moving forward.

While investors and stakeholders await the court’s approval, the proposal represents a rare moment of alignment between a crypto company and a federal regulator. Such cooperation signals a broader shift in crypto-regulatory relations and could pave the way for more collaborative resolutions in future cases.

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

To follow along with developments from Ripple, check their latest statements on their official insights page. Additionally, insights from the SEC can be found through their newsroom releases.