The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) may be heading toward a major shift. A joint motion submitted by both parties is now under review by Judge Analisa Torres, and legal experts believe she is likely to approve it — a decision that could potentially lead to a settlement and bring clarity to one of the most watched crypto lawsuits in the industry.

Attorney Bill Morgan, who closely follows the XRP case, shared his view that Judge Torres will likely grant the motion, even if its content isn’t particularly compelling. His opinion adds weight to the broader expectation that this motion could be a pivotal moment in determining the future of Ripple and the classification of XRP.

Ripple and SEC Request Court Approval for Key Settlement Terms

On June 12, Ripple and the SEC jointly asked the Manhattan District Court to lift an existing injunction that has restricted Ripple’s operations. As part of their proposal, the two sides also requested the release of $125 million held in escrow as a civil penalty.

Under the proposed terms, $50 million of that amount would go to the SEC, while the remaining $75 million would be returned to Ripple. If granted, this motion would effectively resolve the current appeal and cross-appeal in the case, which has dragged on since late 2020.

Though such a request may seem procedural, it represents a significant development in the overall legal landscape for XRP. As both parties are asking the court to modify a prior judgment, the outcome could determine whether the case ends in settlement or continues in a lengthy legal process.

Legal Experts Divided Over Motion’s Strength, But Not Its Impact

Despite its importance, some experts have expressed disappointment with the motion’s quality. Bill Morgan himself said that the document didn’t improve upon repeated readings but added that he still feels Judge Torres will approve it. His reasoning: both sides want this matter resolved, and the motion aligns with legal precedent allowing judgments to be adjusted in exceptional circumstances.

Another prominent voice in the crypto legal community, attorney Fred Rispoli, also weighed in. While he criticized the filing for lacking depth and not properly addressing previous concerns from the judge, Rispoli admitted that the legal arguments presented might be enough for the court to move forward.

Rispoli had hoped for a stronger approach — such as a more thorough explanation of the SEC’s past failures in regulating crypto and clearer acknowledgment of Ripple’s prior actions. However, he conceded that the ultimate decision lies with Judge Torres, and she has broad discretion in such matters.

Why Judge Torres’ Decision Matters So Much

Bill Morgan emphasized that the approval of the joint motion is not just a step forward — it is likely the single most important condition needed to finalize the Ripple-SEC settlement. Without it, the entire deal could collapse, and the ongoing appeal and cross-appeal would move forward, prolonging uncertainty for Ripple, XRP holders, and the broader crypto market.

Morgan stated, “Relief from the judgment is a necessary condition of settlement.” He also pointed out that if the judge rejects the motion, the current agreement would be void, and a new one would have to be negotiated — a scenario that could significantly delay any resolution.

Given that this case has been closely monitored by regulators, exchanges, and crypto investors, the outcome of this motion carries implications beyond Ripple itself. A favorable ruling could serve as a model for how future enforcement actions might be resolved, especially in an environment where the regulatory approach to digital assets remains unclear.

The Larger Context: Ripple, XRP, and Crypto Regulation

The Ripple-SEC case has become one of the defining legal battles in the crypto space. At its core, the SEC claims that Ripple’s sale of XRP constituted an unregistered securities offering, while Ripple argues that XRP should not be classified as a security at all.

In July 2023, Judge Torres partially sided with Ripple, ruling that XRP sales on public exchanges did not meet the legal definition of securities offerings. That decision gave Ripple and the broader crypto industry a much-needed win, though it left room for further appeals and legal wrangling.

With this new joint motion, Ripple and the SEC appear ready to put their differences behind them. The legal clarity that would follow an approved settlement could benefit not only XRP holders but also the many other crypto companies waiting for regulatory direction in the U.S.

A Settlement Could Shift Market Sentiment

Although XRP’s price has been relatively stable in recent weeks, a final settlement in Ripple’s favor could bring renewed optimism. Investors have long been wary of regulatory uncertainty, and a favorable outcome might restore confidence, particularly among institutions that have kept their distance due to legal risks.

Still, the road ahead isn’t guaranteed. Judge Torres’ decision will ultimately determine whether Ripple can close this chapter and move forward without the legal cloud that has hung over the company since 2020.

Final Thoughts

The XRP lawsuit may finally be nearing its conclusion, and the outcome of this joint motion could be the key that unlocks the door to a full settlement. While opinions differ on the strength of the motion itself, there is growing consensus that Judge Torres is likely to approve it — potentially setting a precedent for how crypto enforcement actions are resolved in the future.

As the industry awaits the court’s decision, the Ripple-SEC case remains a critical test of how U.S. regulators and courts will approach digital assets in a rapidly evolving financial landscape.