Ripple and the U.S. Securities and Exchange Commission (SEC) have taken a joint step toward ending their long-standing legal battle over XRP. The two parties recently submitted a motion requesting an indicative ruling from the court to dissolve an injunction tied to a $125 million escrow fund.
Under the proposed terms, $50 million would be paid to the SEC, while the remaining $75 million would be returned to Ripple. The move signals a mutual intent to bring closure to the case, which has been ongoing since 2020.
Prominent crypto attorney John E. Deaton commented on the filing, stating he believes there is a 70% chance that U.S. District Judge Analisa Torres will approve the motion. Deaton, who has closely followed the case, noted that the proposal demonstrates a collaborative effort and aligns with recent legal developments.
He did, however, point out that Ripple could have strengthened its position by referencing previous court criticisms of the SEC’s enforcement practices. In particular, past remarks by Judge Sarah Netburn described the SEC’s conduct in the Ripple case as lacking “faithful allegiance to the law.”
Deaton also mentioned that Ripple could have highlighted potential competitive disadvantages if the injunction remains, especially as rivals like Circle face fewer regulatory constraints. He suggested that the motion may reflect a broader political shift in regulatory tone, indicating that evolving leadership could influence how enforcement cases are resolved.
The court has yet to respond to the joint request, but a favorable ruling could mark a major step toward fully settling the legal dispute surrounding XRP.
