- Ripple and the SEC are now teaming up to revise the penalty terms Judge Torres imposed.
- The firm drags out the case itself, eyeing a better deal as the SEC enforcement stance quietly shifts.
Ripple and the U.S. Securities and Exchange Commission (SEC) are working together to change a key part of the legal judgment in their long-running XRP lawsuit. Former SEC lawyer Marc Fagel recently posted on X, explaining that both sides have filed a joint motion asking for what’s known as an “indicative ruling” to revise the court’s prior order.
The central goal is to adjust the relief imposed by Judge Analisa Torres, who had already ruled that the company was liable for illegal sales of XRP worth hundreds of millions of dollars. Her decision included a $125 million penalty and a ban on future securities violations. However, the current motion by both parties seeks to alter this ruling while keeping within legal boundaries.
Ripple, in a follow-up letter, emphasized that removing the injunction would not free it from future accountability under U.S. securities laws. The request for a ruling aims to give Ripple the same opportunity other crypto firms have received in past SEC settlements.
Judge Hit Ripple With $125M Penalty—Now Both Sides Want Changes
Responding to user questions online, Marc Fagel confirmed that Judge Torres had already issued a decision. He stated,
She found Ripple illegally raised hundreds of millions of dollars from unregistered securities sales, penalized them $125m, and enjoined them from further violations. But now the SEC and Ripple are trying to get her to change the remedies she ordered.
She did. She found Ripple illegally raised hundreds of millions of dollars from unregistered securities sales, penalized them $125m, and enjoined them from further violations. But now the SEC and Ripple are trying to get her to change the remedies she ordered.
— Marc Fagel (@Marc_Fagel) June 20, 2025
Despite this, both parties are now jointly requesting that the court modify those terms. The settlement proposal includes a reduced financial penalty, with the firm aiming for better legal terms amid concerns about potential appeals. This indicates the company believes the changing regulatory stance at the SEC may support a more lenient outcome.
Adding to this, XRP-focused lawyer Bill Morgan stated that Ripple—not the SEC—is behind the delay in resolving the case. He noted,
Rather than cause the delay the SEC is actually bending over backwards to help ripple have the injunction dissolved. Ripple and the SEC would have settled months ago but for Ripple wanting to dissolve injunction.
Gensler Not Responsible for Lawsuit Origin, Says Fagel
Marc Fagel also clarified that the original charges against Ripple came during the Trump administration, under the leadership of former SEC Chair Jay Clayton. He wrote,
The charges were brought under Trump/Clayton, long before Gensler was appointed. And the SEC isn’t dragging anything out; the matter is before a judge for decision.
Meanwhile, the company appears to be using this window to push for more favorable terms than it would have accepted before. According to Morgan, the SEC’s newer enforcement posture has emboldened Ripple. He noted,
The SEC’s new policy towards enforcement has encouraged Ripple to seek more than it would have been satisfied with or lived with before the SEC filed its appeal.
A final decision now rests with Judge Torres. If she grants the request to modify the relief, both parties could reach a settlement shortly thereafter.
At the time of writing, XRP was trading at around $2.16. The price is fluctuating within a narrowing range, with support seen near $2.09 and resistance around $2.24 to $2.27. If XRP breaks above the $2.27 level, it may signal stronger buying momentum. On the other hand, dropping below $2.09 could point to short-term weakness.
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