Impact

Million

<p>Ripple Labs has been embroiled in a legal battle with the SEC since December 2020. The SEC accused Ripple of using XRP as an unregistered security to raise funds. Recently, a federal judge ordered Ripple to pay a $125 million civil <a href="https://www.reuters.com/legal/ripple-ordered-pay-125-million-penalty-improperly-selling-xrp-tokens-2024-08-08/" rel="noopener noreferrer nofollow">penalty.</a> This ruling is a significant moment in the ongoing case.</p>
<h2 style="text-align: center;" id="strong-judge-orders-ripple-to-pay-125-million-strong"><strong>Judge Orders Ripple to Pay $125 Million</strong></h2>
<p>In a recent ruling, Judge Analisa Torres found Ripple Labs liable for a $125 million penalty. This penalty stems from 1,278 transactions that violated Section 5 of the Securities Act. The court’s decision means Ripple must pay this amount to the SEC within 30 days. Judge Torres emphasized that Ripple’s future actions could still violate securities laws. This caution highlights the ongoing scrutiny the company faces.</p>
<h2 style="text-align: center;" id="strong-ripple-s-response-to-the-sec-penalty-strong"><strong>Ripple’s Response to the SEC Penalty</strong></h2>
<p>Ripple’s CEO, Brad Garlinghouse, and Chief Legal Officer, Stuart Alderoty, have acknowledged the court’s decision. They see it as a victory, considering the SEC initially sought a much higher penalty. Garlinghouse stated that Ripple respects the $125 million fine and is ready to continue growing its business. This decision has provided the company with clarity and a path forward, reducing the SEC’s proposed penalty by 94%.</p>
<h2 style="text-align: center;" id="strong-ripple-s-on-demand-liquidity-sales-strong"><strong>Ripple’s On-Demand Liquidity Sales</strong></h2>
<p>Despite the ruling, Ripple can continue its On-Demand Liquidity (ODL) sales. These sales use XRP as a bridge for instant cross-border settlements. Attorney Jeremy Hogan clarified that most of Ripple’s ODL sales occur outside the US and are not subject to SEC regulations. However, Ripple must still ensure compliance within US jurisdictions. Hogan believes Ripple’s legal team is well-prepared to navigate these complexities.</p>
<h2 style="text-align: center;" id="strong-impact-on-ripple-and-the-crypto-market-strong"><strong>Impact on Ripple and the Crypto Market</strong></h2>
<p>The <a href="https://walletinvestor.com/magazinadmin/lawmakers-challenge-sec-over-crypto-stance/" rel="noopener noreferrer nofollow">SEC</a> case against Ripple has had a noticeable impact on the cryptocurrency market. Following the announcement of the penalty, the price of XRP surged by 20%, reaching over $0.60. This price increase reflects the community’s optimism about Ripple’s future. The ruling has also sparked discussions about the potential for an XRP ETF. Ripple’s ability to continue its operations, despite the legal challenges, is seen as a positive sign for the broader crypto industry.</p>
<p>In conclusion, Ripple’s ongoing case with the SEC has reached a pivotal moment with the $125 million penalty. The company remains optimistic and prepared to move forward, ensuring compliance while continuing its innovative work in the cryptocurrency space.</p>
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Ripple Faces $125 Million Penalty in SEC Case

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