The U.S. Securities and Exchange Commission (SEC) has formally requested approval for a proposed settlement with Ripple Labs to resolve their long-standing legal dispute over XRP’s classification and initial sale. The agreement, which outlines the plan for ending the SEC’s civil enforcement action against Ripple executives Christian A. Larsen, Bradley Garlinghouse, and the company itself, seeks to dissolve the previous injunction included in the final judgment. The SEC also requests the release of the $125 million escrow account set aside for Ripple’s civil penalty. In their submission, both parties requested the court to approve this dissolution and release of the funds. Under the proposed settlement, Ripple would pay $50 million to settle the penalties, with the remaining sum being returned to Ripple. The SEC and Ripple also indicated that if approved, they will appeal to the U.S. Court of Appeals for the Second Circuit to transfer the case back to the district court to finalize the settlement. If Judge Torres approves the proposed settlement terms, it would likely end the appeals process and bring a significant conclusion to one of the most closely watched enforcement actions in the cryptocurrency industry. This resolution could also have implications for how digital assets are regulated across the United States. **