Ripple soars after “winning” key legal battle

• Ripple surges after court decision
   
• $125M fine ordered vs $2B SEC sought
   
• Case lacked fraud claims, lowering the penalty
   
• Judge’s decision seen as a win for the crypto sector

Ripple (XRP) has jumped ~18.69% yesterday and is continuing to post gains (+2.49% at the time of writing).

This rapid growth comes after, what is considered a win, Ripple Labs Inc. has been ordered to pay a penalty of $125 million for improperly vending its XRP token to institutional clients.

This penalty, considerably less than the nearly $2 billion sought by the U.S. Securities and Exchange Commission (SEC), concludes a protracted legal skirmish that has garnered significant attention in the cryptocurrency industry.
 

This positive news has extended strong support for XRP along with a number of other cryptocurrencies.
 

• XRP has almost rebounded to the pre-market sell-off which started on Monday, Aug 5
   
• Bitcoin is up 4.08% (at the time of writing)
   
• Ethereum is up 3.86% (at the time of writing)

More on the case...

The SEC's lawsuit against Ripple, initiated in 2020, accused the company of violating securities laws by garnering funds through the sale of XRP without registering it as a security.

The case has been closely monitored for its potential implications on the SEC's authority over the rapidly evolving crypto sector.

The presiding Judge, in her ruling, highlighted that the case did not involve fraud claims, a factor contributing to the notably reduced penalty.

Also, the Judge's determination that XRP only falls under securities law when sold to institutional investors was viewed as a significant victory for the crypto industry.