- Ripple has revealed that the SEC has agreed to request that the court vacate the injunction in their ongoing lawsuit, marking a significant victory for Ripple.
- This development follows the SEC’s decision to reduce the penalty from $125 million to $50 million after Ripple withdrew its cross-appeal.
Ripple and SEC Clash: A New Development
Ripple has made a groundbreaking revelation in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). According to Ripple’s latest quarterly market report, the SEC has agreed to request that the court vacate the injunction imposed on XRP. This surprising move is seen as a significant victory for Ripple and the wider cryptocurrency industry.
SEC’s Change of Heart
In Q1 2025, the SEC informed XRP of its intent to withdraw its appeal, a decision that Ripple has celebrated. This agreement followed Ripple’s decision to withdraw its own cross-appeal, leading to a reduced penalty from $125 million to $50 million. The SEC’s request to vacate the injunction is still pending SEC Commission approval, but it marks a notable shift in the agency’s stance.
Ripple stated, “This outcome reaffirmed what had been clear from day one: the facts and the law were on Ripple’s side.” The development has been highlighted by attorney and XRP supporter Bill Morgan, who described it as the first public acknowledgment of the SEC’s request to vacate the injunction.
A Look Back: Ripple vs. SEC Legal Battle
The Ripple vs. SEC saga began in December 2020, when the SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen, alleging that XRP was an unregistered security. In July 2023, Judge Analisa Torres ruled that XRP is not a security when sold to retail investors through exchanges. However, she found that Ripple’s institutional sales of XRP did violate securities laws.
The SEC eventually dropped charges against Ripple’s executives in October 2023, further strengthening Ripple’s position in the case. Now, with the SEC agreeing to request the court to vacate the injunction, Ripple’s victory appears even more pronounced.
Ripple’s recent update has shed light on the evolving dynamics of the SEC lawsuit, offering hope to the broader crypto industry. The case continues to be a critical battleground for cryptocurrency regulation in the United States, and this latest twist could set a precedent for other crypto firms facing regulatory challenges.
