Ripple Labs Might Pay Its $125M SEC Fine Using XRP Tokens, StratoVM Expands Bitcoin's DeFi Footprint

Ripple Labs got hit with a $125 million fine from the SEC for breaking securities laws. Some legal experts suggest that Ripple could potentially settle using XRP tokens rather than cash

Ripple Labs is still in the hot seat after August saw the SEC hit the company with a $125 million penalty for selling XRP to institutional investors without registering the offerings, the agency said.

While Ripple is appealing the SEC’s ruling and continues to fight the no-good, very bad day in court, discussion has since shifted to how exactly Ripple might pay off this penalty.

Yassin Mobarak, a member of the XRP community, recently pointed out that the government has created a digital asset reserve to hold highly liquid cryptocurrencies like XRP.

If Ripple pays the penalty using XRP, it would mark the first time the U.S. government is holding any XRP tokens. Mobarak adds that this scenario would align the government’s interests with those of XRP holders, potentially paving the way for clearer regulations and broader adoption.

“If the Treasury pays the settlement in preferred cryptocurrency holdings like XRP, it would create an interesting situation where the government and token holders benefit from increased liquidity and useful token flow in the ecosystem,” Mobarak said in a recent X post.

This scenario also ties into a suggestion from attorney Jeremy Hogan, who previously pointed out a Supreme Court case from 1869 (Willard v. Tayloe) that could allow for the SEC and Ripple to settle the penalty using XRP.

The case, which dealt with payments made during the Civil War era, ruled that if both parties consent, payments can be made in commodities.

This ruling, according to Hogan, could be applied to the current situation, with both the SEC and Ripple agreeing to settle the penalty using XRP, especially given the recent actions of the Treasury Department to accept and manage cryptocurrencies.

StratoVM ($SVM) Could Be Generating Buzz As A Layer-2 Solution For Bitcoin

While Bitcoin (CRYPTO: BTC) is known for its vast market cap and the astronomical highs and lows it hits regularly in the news, the crypto sector has also been buzzing about another development—a new Layer-2 solution for Bitcoin that could finally integrate the king crypto into decentralized finance.

Enter StratoVM (CRYPTO: SVM), an EVM-compatible Layer-2 solution aiming to enable developers to build smart contracts and decentralized apps on Bitcoin.

Interest in StratoVM has been heating up quickly, with the crypto’s price heating up 6,911% over the last month to reach about $0.1906, according to CoinGecko.

And while the price action has been grabbing headlines, StratoVM might be best known for its potential to expand Bitcoin’s functionality in DeFi while keeping the security that Bitcoin is famous for.

The project has also shown promising early results, with its testnet already attracting more than 113,000 wallets and handling around 56,000 transactions daily as it prepares to launch its mainnet.

This could change what’s possible within the Bitcoin ecosystem, especially when comparing it to the StratoVM community, which is growing rapidly with over 100,000 followers across X, Telegram and Discord.

As the SEC continues to crack down on crypto projects throughout 2024, StratoVM might be best known for its parent project, Core Chain, which was granted the status of "national information infrastructure" by the Chinese government in 2023.

StratoVM is also heating up with 50+ strategic partnerships and rumors of a centralized exchange listing.

This might help StratoVM finally bridge the gap between Bitcoin and the world of decentralized finance.

Here’s what else you need to know:

Ripple’s $125 million penalty has sparked interesting discussions about payment methods. Some analysts suggest the company might settle using XRP tokens instead of traditional currency—a move that could set a precedent for how digital asset cases are settled in the future.

At the same time, StratoVM could generate serious buzz as a Layer-2 solution for Bitcoin.

As its mainnet launch approaches, the platform could potentially transform how Bitcoin interacts with decentralized finance, opening new opportunities for BTC holders who have traditionally been limited in their DeFi participation options.

This article does not offer financial advice. Cryptocurrencies can be unpredictable and carry risks. It is important to conduct thorough research before acquiring any crypto asset. Statements regarding the company's future plans, new products or service offerings are forward-looking statements and include risks and uncertainties.