According to court documents, both parties have reached a settlement under which the SEC would receive $50 million, with the remainder to be returned to Ripple Labs. This proposed split reflects a new phase in the long-standing litigation, following recent shifts in SEC’s regulatory stance and the parties' desire to resolve the matter outside further courtroom battles.

The motion cites “exceptional circumstances” that justify modifying the court’s previous final judgment, referencing both the achieved settlement and evolving regulatory attitudes towards digital assets. The parties argue that maintaining the injunction is no longer necessary given their agreement and a broader move toward closure.

Notably, Judge Analisa Torres had previously denied a similar request in May 2025. However, the context has since changed, and both the SEC and Ripple now emphasize their joint commitment to ending the dispute amicably.

For context, in March 2025 Judge Torres indicated that the high-profile case between the SEC and Ripple Labs would be closed in the near term, reflecting growing consensus and recent legal precedents in the crypto regulatory space.

Key Points

  • SEC and Ripple Labs request court approval to lift the injunction on $125 million held in escrow.
  • Settlement terms allocate $50 million to the SEC; remaining funds are to be returned to Ripple Labs.
  • The joint request reflects regulatory shifts and the parties' desire to avoid protracted litigation.
  • The Manhattan court had denied a similar motion in May, but recent settlement developments provide new grounds for approval.