Ripple Ordered to Pay $125 Million in Landmark SEC Ruling

• Ripple faces a $125 million penalty for violating securities laws, a ruling that could influence future cryptocurrency lawsuits.
• The Ripple vs. SEC case could become a benchmark for classifying cryptocurrencies, affecting pending legal battles.
• XRP price sees modest gains amid rumors of a potential XRP ETF, following recent Bitnomial Exchange filings.

Judge Torres issued a pivotal ruling on August 7 in the ongoing Ripple vs. SEC lawsuit, which began in December 2020. Ripple Labs was ordered to pay a $125 million civil penalty for violating securities laws by offering XRP to institutional investors. The case, closely followed in the crypto community, could set a significant precedent for how cryptocurrencies are classified in future legal battles.

Ripple Ordered to Pay $125 Million Fine

Ripple’s legal battle with the SEC reached a significant milestone with the recent court ruling. The company was found to have violated securities laws, leading to a $125 million fine. Although this amount is far below the SEC’s initial demand of nearly $2 billion, the regulatory body considers it a win, as the fine is 170% higher than the $10 million Ripple suggested.

A recent report from Bloomberg on the Ripple case, states that there has been great attention on the issue of whether cryptocurrencies should be treated as federal securities. The differentiation by Judge Torres between sales to institutional investors and the general public for XRP could impact other pending SEC cases against Binance, Coinbase as well as Terraform Labs.

There is Speculation About a Possible XRP ETF

Binomial Exchange’s filing for XRP US Dollar Futures contracts has led to speculation in the crypto community about an XRP ETF. This move is seen as indicative of an impending XRP ETF along the lines of Bitcoin and Ethereum. The filing could open up a new stage in terms of trading volume and liquidity for XRP.

XRP prices went up slightly amid legal developments. Over the last 24 hours, this cryptocurrency has risen by 1.06%, reaching $0.577 in price per unit traded. Meanwhile, increased trading volumes indicate greater interest among investors towards it as well.