The recent development in the Ripple vs. SEC case has taken a surprising turn. Judge Analisa Torres denied the joint motion filed by the SEC and Ripple for an indicative ruling on their settlement, deeming it "procedurally improper". This decision comes after the SEC and Ripple agreed to settle the case with a reduced penalty of $25 million, down from $125 million, and the lifting of operational restrictions on Ripple.
Key Points:
Settlement Terms: The SEC and Ripple agreed to a settlement with a reduced penalty of $25 million, with $75 million being returned to Ripple's coffers.
Injunction Removal: The agreement calls for lifting the injunction imposed last August, effectively removing regulatory restrictions on Ripple's operations.
No Challenge to Summary Judgment: Both parties agreed not to challenge Judge Torres's July 2023 summary judgment, which determined that programmatic sales of XRP didn't constitute securities offerings.
Next Steps: The case will return to the district court for formal approval of the settlement, after which both parties can drop their appeals and close the case.
Impact on $XRP :
Price Movement: XRP's price initially surged over 10% following Ripple CEO Brad Garlinghouse's announcement about the SEC dropping its appeal, but it later dropped 3% after the latest court ruling, trading at $2.38 with a 6.15% decrease.
Legal Precedent: The settlement preserves a favorable interpretation for Ripple and potentially other crypto projects, maintaining that XRP is not considered a security under current law ¹ ² ³.
