The Securities and Exchange Commission, as well as Ripple Labs Inc., has filed a magnified request to return to Judge Analisa Torres, which could bring a sudden end to their four and a half years of XRP lawsuit. In a five-page joint letter filed on June 12, 2025 (Document 987), the litigants demanded a “indicative ruling” in southern New York that would remove the injunction imposed on Ripple last August and release the Lion’s share of $125 million in citizen custody custody.
The end of XRP lawsuit?
The motion was filed under the Federal Rules of Civil Procedure Sections 62.1 and 60(b)(6), after Judge Torres rejected an earlier, nearly identical application in May for failing to show the “special circumstances” required to modify the final judgment. The renewal application is intended to fill this gap. The parties wrote that “special circumstances deserve modification to the final judgment,” determining the efficiency of settlement, the protection of judicial resources, and the SEC’s evolving priority of crypto enforcement as decisive factors.
Under the proposed arrangement, Ripple will pay $50 million to the SEC for a “full satisfaction” fine, and approximately $75 million in interest will also be restored to the company. In addition, the permanent ban will be lifted – selected on August 7, 2024, and taking the violation of Article 5 of the Securities Act as an example. The parties stressed that their compromise was “a necessary condition for resolution” and promised that if the indicative decision issue was petitioned to the Court of Appeal in order to bring relief to the District Court and the appeal could be dismissed.
The letter recites a procedural history that began with the summary judgment order of Judge Torres’ landmark July 13, 2023. The decision decomposed the SEC case, concluding that Ripple’s agency XRP sales violated federal securities laws, while also ruling that Crypto Exchanges’ programmatic sales did not constitute a product under investment contracts. After the remaining SEC claims against Ripple executives Brad Garlinghouse and Chris Larsen were voluntarily dismissed, the court imposed a $125 million civil fine on August 7, 2024 and banned Ripple for further unregistered XRP agency allocations.
Both parties have noted the appeals in October 2024, but the lawsuits were suspended on April 16, 2025 to allow time to settle. After May 8, 2025, a common request for the indicative decision was rejected a week later because the parties have not yet stated why the amendment complies with Rule 60(b)(6) “special circumstances”.
New submissions rely heavily on the Second Circuit Authority – Microsoft Corp. v. Bristol Tech. , Major League Baseball props. v. Pacific Trading Card – Recognizing that the court may modify or revoke its own judgment in doing so, which is essential for reconciliation and promoting the judicial economy. The letter recently implemented a “termination of appeals…with dismissals of these dismissals” in other Crypto-Asset cases, which points to the policy shifts of the agency’s acting chairmanship after January 2025, Mark Uyeda and his newly formed Crypto Task Force.
The parties also believed that the public interest was not harmed, as Judge Torres’ substantive summary judgment would “stay unchanged and would continue to bind the parties.” They believe that the requested relief only affects the remedy clause (penalty size and scope of the injunction), whose adjustments “reflect unique facts of this situation” and therefore have a “relatively small” precedent weight.
What will happen next
Judge Torres must now decide whether these clear factors meet the high standards of Rule 60(b)(6). If she expresses her willingness to grant relief in XRP’s lawsuit, securities regulators and San Francisco-based FinTech will require the Second Circuit to revoke the case’s amended judgment, after which the SEC’s appeal (No. 24-2648) and Ripple’s cross-trading (24-2705) will be voluntarily fired.
If the court fails, the lawsuit will return to the appeal track, extending a legend of launch that began with the lawsuit filed on December 22, 2020. Currently, the fate of the ban and $75 million in custody funds have been extended by Ripple’s direct regulatory posture, the direct regulatory posture of Torres – whether Torres accepted the five-year rule and regulated it in the five-year case.
At press time, XRP was trading at $2.11.
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