Ripple and SEC Seek to Modify Judgment, Settle Longstanding Dispute

Anderson PC reports a “notable shift toward final resolution” of SEC v Ripple Labs, Inc., Bradley Garlinghouse, and Christian A. Larsen.

Ripple Labs, a stablecoin solutions company, and the Securities and Exchange Commission (SEC) have jointly filed a motion in the Southern District of New York seeking to amend a final judgment and release funds held in escrow.

Under the proposed agreement, $125 million in civil penalties would be modified, with Ripple paying $50 million to the SEC and reclaiming $75 million. The joint motion signals both parties’ desire to resolve the long-standing dispute without further litigation.

The parties argue that evolving regulatory attitudes toward digital assets, particularly the SEC’s changing enforcement focus under new leadership, justify this relief.

The motion is brought under Federal Rules of Civil Procedure 60(b)(6) and 62.1, which allow courts to revisit final judgments in “extraordinary circumstances.”

The funds remain in escrow, and both sides express a shared interest in concluding the case efficiently and in line with current enforcement priorities.

Originally, the penalty reflected the SEC’s aggressive stance toward unregistered securities in the crypto sector. However, recent regulatory developments and judicial signals suggest a different approach.

The motion highlights the fact that the current regulatory climate differs significantly from the one in place when the judgment was issued, making continued enforcement inconsistent with present realities.

This case illustrates the growing importance of strategic motion practice under Rule 60(b)(6) in the evolving digital asset landscape. It also signals a shift toward pragmatic settlements over prolonged litigation in legacy crypto enforcement matters.

Attorneys advising digital asset clients should closely monitor this case, as it could serve as a roadmap for negotiating relief in similarly situated cases. Legal certainty and adaptability remain key as regulatory norms continue to develop.