Judge Torres now holds the final say in dissolving the injunction and finalizing the reduced penalty.
Key Highlights:
- Ripple and the SEC have filed a joint settlement letter requesting court approval to finalize terms.
- Ripple’s penalty has been slashed from $125 million to $50 million, and the remaining funds will be returned.
Yello ParadiseSquad, after nearly four years of courtroom tension, Ripple and the SEC have agreed to settle.
On April 8, both parties filed a joint settlement agreement letter, confirming that the long-running legal battle over XRP is approaching its end.
The letter requests an indicative ruling from Judge Analisa Torres, asking whether she’d be willing to dissolve the prior injunction and reduce the imposed penalty, now that both sides have come to terms. This step is procedural but pivotal: the Second Circuit Court of Appeals must send the case back to the district court before the settlement can be formally approved.
Key Terms of the Settlement
The penalty Ripple faced has been significantly reduced. Originally ordered to pay $125 million, Ripple will now owe only $50 million. The remaining funds will be returned to the company, pending court approval.
As part of the agreement, both parties have also acknowledged that Judge Torres’s 2023 summary judgment ruling will stand unchallenged. That ruling declared Ripple’s programmatic XRP sales were not securities, while confirming that institutional XRP sales did violate securities law.
This partial win for Ripple became a turning point in the case, and the SEC’s agreement not to contest it further cements a key legal precedent in crypto regulation.
What Happens Next?
The case now hinges on two final moves. First, the Second Circuit must remand the case to the district court. Then, Judge Torres must issue an indicative ruling, signaling her willingness to lift the existing injunction and formally approve the revised penalty.
Once that happens, Ripple will be cleared of all ongoing litigation related to this case, and XRP will move forward under a clear—but nuanced—legal interpretation. Programmatic sales get a green light. Institutional sales remain in a grey zone requiring disclosures or adjustments.
Why This Matters for XRP and the Market
This is more than just closure for Ripple. The final settlement clarifies one of the biggest legal sagas in crypto history and removes a lingering cloud of uncertainty around XRP.
We’ll be unpacking the full implications of this decision—including how it could affect altcoin classification, SEC enforcement trends, and pending ETF filings—in our YouTube stream, with a full breakdown and XRP risk map available to ParadiseFamilyVIP members.
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