Attorneys representing Ripple and the U.S. Securities and Exchange Commission (SEC) have once again asked a federal court to approve a settlement that would revise parts of their August 2024 final judgment.

The joint motion was filed on June 12 in the U.S. District Court for the Southern District of New York. The parties are requesting an indicative ruling from Judge Analisa Torres that would allow for changes to the original decision if the case is returned to her by the appeals court.

Joint Motion Filed by SEC & Ripple to End Dispute: What does it mean?

This is not the first attempt at modifying the final ruling. In May, Judge Torres denied a similar request on the basis that the parties had not identified “exceptional circumstances” that would justify a change to the judgment. There is currently no scheduled date for a decision on the new motion.

If Judge Torres grants the new motion, it would signal her willingness to accept the proposed changes, should the appellate court remand the case.

The proposed modifications to the August 2024 judgment include lifting the injunction that prevents Ripple from selling its XRP token, reducing the civil penalty from $125 million to $50 million, and allowing the return of remaining escrow funds. $50 million would be allocated to the SEC’s statutory relief fund, and the rest may be returned to Ripple.

In contrast to the previously denied motion, this revised request argues that exceptional circumstances do now exist.

These include the duration of the litigation, mutual agreement between the parties to settle, and the SEC’s evolving approach to cryptocurrency enforcement.

The filing notes that Acting SEC Chair Mark T. Uyeda has established a new crypto task force, and recent enforcement trends show a shift in the agency’s handling of digital asset cases.

Potential Outcomes between Ripple and the SEC

Should Judge Torres agree to the indicative ruling, Ripple and the SEC would then request that the U.S. Court of Appeals return the case to the lower court, enabling them to finalize the settlement. If the request is denied, the case will remain in the appeals process, increasing the likelihood of a prolonged legal battle without a definitive resolution.

This motion represents a pivotal moment for both Ripple and the broader cryptocurrency industry. A favorable ruling could provide regulatory clarity for XRP and potentially set a precedent for future cases. A denial, on the other hand, could extend uncertainty in a case that has drawn significant attention from investors and the XRP community.