Ripple’s Court Win: How Recent Ruling Shields XRP Institutional Sales Amid $125 Mln Fine
Mustafa Mulla8 Aug 20242 min read
Ripple’s legal battle with the SEC has sent shockwaves through the crypto industry. With the recent court rulings, investors and analysts alike have been on edge, wondering how the decisions will impact Ripple’s core business: On-Demand Liquidity (ODL).
Now, renowned attorney Jeremy Hogan is shedding light on the situation, suggesting that Ripple’s operations may continue largely uninterrupted. But is this really the case? Let’s dive into the details.
International Sales Remain Unaffected
In a recent tweet, Hogan highlighted that most of Ripple’s XRP and ODL sales take place outside U.S. jurisdiction. As a result, these transactions are not impacted by the court’s ruling, allowing Ripple to continue its international operations without disruption.
Hogan also pointed out that Ripple can still sell XRP to U.S. institutions under specific registration exemptions. There are various exemptions available, which makes it possible for Ripple to comply with regulatory requirements when dealing with businesses in the U.S.
SEC’s Limitations and Ripple’s Defense
Judge Analisa Torres’s decision did not grant the SEC the precise language it sought regarding ODL sales. Should the SEC believe Ripple has breached the order, it would need to provide evidence in a contempt hearing.
Hogan believes Ripple could argue that if XRP is held briefly, there is no expectation of profit, which could be a strong defense.
Ripple’s legal team has had time to adjust its sales practices following the summary judgment. Hogan suggests that any compliance issues would likely emerge only if the SEC files a contempt motion, which Ripple is prepared to address.
Despite these challenges, Hogan’s analysis suggests that Ripple is well-prepared to continue its ODL sales with minimal disruption.
It’s Still a Win for Ripple
Recently, Ripple achieved a significant court victory: XRP was ruled not to be a security, marking a win for the company. However, Ripple still faces a $125 million civil penalty, a substantial reduction from the $2 billion originally sought by the SEC. Judge Torres found that while some of Ripple’s XRP sales were unregistered securities offerings, XRP itself is not classified as a security.
Following this judgment, XRP’s price surged approximately 27%, reaching $0.63, signaling a positive market reaction.
Read Also: Crypto Bull Run in September? U.S. $50B Buyback & Rate Cuts Could Ignite the Market!
Ripple’s future looks bright, even amid legal storm clouds. Its only up from here!
