Ripple and SEC Refile New Motion to Resolve Ongoing Lawsuit

The U.S. SEC and Ripple have jointly refiled their request for an indicative ruling, addressing the procedural shortcomings raised by Judge Analisa Torres. 

For context, the parties initially filed a motion for an indicative ruling to modify Judge Torres’ August 2024 final judgment in May. That judgment required Ripple to pay a fine of $125 million with a permanent injunction imposed on the company’s XRP institutional sales.  

Following an agreement reached earlier this year, the parties requested an indicative ruling to dismiss the injunction and release the $125 million held in escrow, with $50 million sent to the SEC and the remaining amount returned to Ripple. 

However, on May 15, Judge Torres denied the indicative ruling motion, saying the parties did not show the ‘exceptional circumstances’ required for relief from a final judgment under Rule 62.1. 

SEC and Ripple Refile Indicative Ruling Motion Highlighting Exceptional Circumstances 

Meanwhile, the parties have now refiled the indicative ruling request under Rule 60(b)(6), emphasizing why modifying the final judgment is necessary. The motion argued that the rule allows the court to issue relief from a final judgment for any reason that justifies it. 

The motion highlighted several reasons showing ‘exceptional circumstances’ warranting a modification of Judge Torres’ final ruling. 

Settlement Agreement 

First, the new filing mentioned the settlement agreement currently in place. According to the parties, modifying the judgment in accordance with the agreement is necessary to give effect to the settlement. 

SEC Crypto Policy Shift and Preservation of Judicial Resources 

The filing also mentioned the SEC’s recent crypto policy shift as another exceptional circumstance justifying a modification of the final ruling. For context, the SEC’s new leadership has softened its stance on crypto enforcement actions. 

This is evident in the regulator’s dismissal of several crypto-related litigations, including the Coinbase and Consensys cases. Accordingly, the motion contended that termination of the appeal under the settlement agreement “would be consistent with these dismissals by joint stipulation.” 

Finally, the motion argued that the parties’ proposed resolution is necessary to preserve judicial resources, particularly in the Second Circuit. 

XRP Community Members React 

Meanwhile, XRP community figures like Ashley Prosper expect Judge Torres to issue a decision on the request within a few days. Additionally, attorney Bill Morgan speculated that Judge Torres would eventually grant the motion. 

Just reading today’s Ripple and SEC joint motion to judge Torres over lunch. It does not become stronger and more impressive the more you read it. I just have a feeling she’s going to grant the motion anyway.🤷

— bill morgan (@Belisarius2020) June 13, 2025

If this happens, the parties would ask the Second Circuit to remand the case to Judge Torres to enter the modified judgment, concluding the multi-year legal dispute.