How Recent Ruling Protects Institutional Sales of XRP Amid $125 Million Fine

Ripple’s ongoing legal battle with the SEC has raised many questions about how the recent court decisions could impact its On-Demand Liquidity (ODL) sales. Meanwhile, attorney Jeremy Hogan offers insights suggesting that Ripple’s business could remain largely unaffected.

Below are the key points Hogan highlights regarding Ripple’s ability to handle these legal challenges.

International sales remain unaffected

In a recent tweet post, Hogan points out that the majority of Ripple’s XRP and ODL sales occur outside of U.S. jurisdiction, meaning they are unaffected by the court ruling. However, Ripple can continue these international transactions without interruption.

I see a lot of questions about what the order means for ODL sales. I don’t see it changing the status quo ONE time, for the following reasons:

1. As Ripple has stated, most XRP and ODL sales are outside of US jurisdiction and are not covered by the ruling. Those… photo.twitter.com/3GimWEcp0c

— Jeremy Hogan (@attorneyjeremy1) August 7, 2024

Additionally, Ripple is allowed to sell XRP to institutions within the U.S. under certain registration exemptions. Hogan notes that there are several exemptions available, making it feasible for Ripple to meet regulatory requirements when doing business with businesses.

Court Rulings and SEC Challenges

Judge Analisa Torres’s decision did not provide the SEC with the specific language it sought regarding ODL sales. If the SEC believes Ripple violated the order, it would have to present evidence in a contempt hearing.

This scenario would allow Ripple to argue that there can be no expectation of profit if XRP is only held temporarily. Hogan finds this position compelling.

Ripple’s legal team has had time to adjust its sales practices following the summary judgment. Hogan suggests that any compliance issues would likely only come to light if the SEC files a contempt motion, which Ripple is prepared to address.

Despite these challenges, Hogan’s analysis shows that Ripple is well prepared to continue ODL sales with minimal disruption.

Ripple vs SEC Update

Ripple recently received a major court ruling in its ongoing battle with the SEC. The court ruled that XRP itself is not a security, a victory for Ripple. However, Ripple still faces a $125 million civil penalty, significantly lower than the $2 billion the SEC originally sought.

Judge Analisa Torres ruled that while some of Ripple’s XRP sales were unregistered securities offerings, XRP itself does not qualify as a security.

Following this statement, the price of XRP rose by around 27% to $0.63, indicating a positive market reaction.

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