The settlement and its impact on the Ripple project and the XRP currency:
If a settlement is reached, the SEC and Ripple will agree on the penalty the latter must pay for violating US securities laws.
In July 2023, Judge Analisa Torres ruled that Ripple violated securities laws by selling unregistered XRP to institutional investors, and a court ruling on damages is expected soon.
If the settlement occurs, the SEC will not be able to appeal court rulings, including a July 2023 ruling that ruled that automated sales of XRP did not meet the third condition of the Howey test.
This could set a precedent for future lawsuits related to cryptocurrencies, which is a major victory for Ripple and the US digital asset market.
In June 2024, the lead judge in the SEC v. Binance case cited the XRP automated sales ruling, dismissing the SEC's charges against Binance related to secondary sales of BNB as securities under the Howey Test.
Judge Amy Berman Jackson affirmed the courtâs approach in the Ripple case.
On July 13, 2023, the value of XRP rose to $0.9327 as a result of the court rulings, but the threat of an appeal by the authority saw it fall below $0.50.
