Ripple reveals the SEC's request to override the injunction in the lawsuit: More Information

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Ripple’s recent Q1 2025 XRP Markets Report shines light on a new chapter in the company’s history as SEC cases closes and US policies evolve.

In an update to Ripple and the Securities and Exchange Commission (SEC) cases, Ripple revealed that the SEC has agreed to require the court to vacate an injunction. This disclosure comes from Ripple’s latest quarterly market report.

Ripple said, “In the first quarter, we conveyed a clear victory for both Ripple and the Broader Crypto industry, which communicated Ripple’s intention to withdraw its appeal. Following Ripple’s decision to withdraw its own appeal, the SEC agreed to reduce the proposed penalty from $125 million to $50 million, closing the contract with SEC approval. And the law was on Ripple’s side.”

A report, referenced by attorney and XRP enthusiast Bill Morgan in XPost, notes that the SEC agrees to require the court to override the injunction in a lawsuit that does not hold up approval from the SEC committee. Morgan noted that this was the first explicit general perception of such a request by Ripple.

From Ripple’s first quarter, the quarterly market report released today makes an interesting reference to the lawsuit. I think this is the first express public reference by Ripple, where the SEC agreed to require the court to vacate a permanent injunction. /1pic.twitter.com/uzgqtz3ht4
– Bill Morgan (@belisarius2020) May 6, 2025

The SEC originally sought a permanent injunction to prevent Ripple from violating the Securities Act in the future. However, Ripple is constantly pushed back, claiming that XRP is not security and should not be subject to the same regulations.

Ripple Sec Litigation Reflection

In December 2020, the SEC filed lawsuits against Ripple Labs, CEO Brad Garlinghouse and executive chairman Chris Larsen claiming that XRP was unregistered security and that Ripple raised more than $1.3 billion through unregistered securities offerings.

In a landmark decision in July 2023, Judge Analisa Torres held that XRP is not security if it was sold to retail investors via an exchange. However, she discovered that Ripple’s institutional sales of XRP violated the securities law.

In October 2023, the SEC voluntarily dropped the charges against Ripple executives. This was primarily considered a major victory.