Ripple Confirms SEC Move to Lift Injunction as XRP Legal Battle Nears Resolution
Ripple's Q1 report reveals SEC move to lift injunction and lower penalties, signaling major progress in the long-running XRP case.
Ripple has disclosed a pivotal update in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), confirming for the first time that the agency has moved to request the court lift the longstanding injunction against the company.
The revelation appears in Ripple’s Q1 2025 XRP Markets Report and marks a significant turning point in a case that has shaped the regulatory landscape for digital assets since 2020. Legal analyst Bill Morgan, a close observer of the proceedings, emphasized the significance of this public acknowledgment, noting that it represents Ripple’s first explicit confirmation of the SEC’s formal request to vacate the injunction.
The report details a series of developments that suggest the dispute is approaching resolution. During Q1, the SEC notified Ripple of its intent to withdraw its appeal, prompting Ripple to reciprocate by dropping its cross-appeal. This mutual agreement paved the way for a reduced penalty proposal, with the SEC lowering its recommended fine from $125 million to $50 million. The agency is now awaiting internal approval before the injunction can be formally lifted by the court.
This shift is particularly notable given the trajectory of the case, which began in December 2020 when the SEC accused Ripple of unlawfully selling XRP as an unregistered security. While a key ruling in July 2023 found that XRP does not constitute a security in retail transactions, the court did rule that Ripple’s institutional sales violated securities laws.
Ripple’s latest communication reiterates the company's longstanding position that both facts and law have consistently supported its defense. The report also introduces a marked change in tone, offering a more transparent account of the legal status than previous updates, which had carefully avoided referencing the injunction directly.
Although the SEC has yet to issue final internal approval for the motion, the agency’s explicit move to vacate the injunction strongly suggests that a settlement may be imminent. For a case that has come to symbolize the broader clash between crypto innovation and regulatory oversight, this development could signal the beginning of closure.
As the legal chapter edges toward resolution, Ripple’s proactive disclosure offers investors and the broader crypto market a clearer view of the endgame in one of the most closely watched enforcement actions in digital asset history.
