Ripple-SEC: Despite Recent SEC Ruling, Ripple Free to Sell XRP to Institution Amid Lawsuits
On August 7th, the U.S. Securities and Exchange Commission (SEC) imposed a $125 million fine on Ripple in their ongoing lawsuit, alleging that the company conducted unregistered securities offerings. However, the focus has shifted to Ripple’s use of on-demand liquidity (ODL) sales, particularly related to XRP’s role in cross-border settlements.
Ripple Continuous ODL Sales
Attorney Jeremy Hogan has clarified that ODL sales leveraging XRP should not be significantly affected by the SEC ruling, especially those conducted outside the U.S. jurisdiction. He highlighted five exemptions that Ripple could use when selling to businesses, implying that ODL sales can continue.
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Despite this, the judge didn’t address the ODL aspect directly, leaving room for potential future contentions. Hogan emphasized that the SEC can file for contempt if they believe Ripple violated the court order, challenging any exemptions claimed for XRP usage in ODL transactions.
It’s worth noting that Ripple’s legal team has had access to the summary judgment for over a year, potentially leading to adjustments in their XRP sales for regulatory compliance. However, the extent of Ripple’s adherence to the court’s guidelines remains uncertain, pending a possible contempt hearing.
Following the SEC’s announcement of the fine, the XRP community reacted positively, given that the penalty was considerably lower than the $2 billion initially sought. This led to a significant surge in the XRP price, prompting discussions among market analysts about the potential for an XRP exchange-traded fund (ETF).
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