- A top lawyer explains 4 reasons Ripple could still sell XRP institutional investors.
- Ripple thrives because of the ODL’s foreign jurisdiction protection.
The American Blockchain Payments firm RippleLabs Inc. has just heaved a huge sigh with relief. Latest ruling by Judge Analisa Torres. The decision mandated that payments company pay a $125 million fine The official conclusion A long and drawn out legal battle between the United States Securities and Exchange Commission and the United States Securities and Exchange Commission.
Jeremy Hogan explained the implications of the case to Ripple. The focus of his analysis is the On Demand Liquidity(ODL) product, which sells XRP.
How can Ripple sell XRP institutionally?
Remember that the main contention of the case hinges upon two fundamental considerations. The sales to corporate or institutional buyers and to retail investors are included. Although XRP had been declared a security by an earlier ruling the $125m penalty was the punishment for Ripple’s coin sales.
There are many questions about what this injunction will mean for ODL sales. It will not change the status quo at all, and for these reasons:
1. Ripple stated that the vast majority of its XRP sales and ODLs are not within the jurisdiction of the United States and therefore, they do not fall under the ruling. Those… pic.twitter.com/3GimWEcp0c
— Jeremy Hogan (@attorneyjeremy1) August 7, 2024
Hogan clarifies what the implications are for ODL Sales. He doesn’t see the status-quo changing. Hogan, who supports his position in the lawsuit, said that Ripple argued all along the way through the court battle that most of the XRP/ODL sales were outside the US regulatory or legal jurisdiction. It is a way to protect the company’s ability to sell as they have always done, despite any lawsuit.
Hogan stated that Ripple could do this if it chooses to sell its XRP. It must, however, offer the sales in an approved manner. “exemption to registration” provision. He noted that Ripple had about five options for exemption, two of which would likely fit the company’s main motives.
Gray Areas of the Ruling
Jeremy Hogan has pointed out that Ripple can also sell XRP through its ODL service to institutions, since Judge Torres didn’t give the SEC language they prefer for ODL.
Ripple Labs could be charged by the SEC if it sells XRP using ODL. Hogan, however, said that the SEC would need to provide evidence in support of this complaint. Hogan said that Ripple’s argument could serve SEC a loss immediately, as there’s no profit expectation as the XRP will only be held for a couple of seconds according to the ODL operational modes.
We are a team of professionals who can help you. discussed Summary judgment was issued in the Ripple against SEC case over a month ago. Hogan argued it is a fair time for Ripple’s legal team devise a method to compliantly sell XRP. Ripple’s defense mechanism will only become known if the SEC holds a hearing for contempt.
Epic XRP Rebound
Our recent analysisXRP demand had risen to its pre-lawsuit level in the days leading up to the ruling. The ruling has led to a price increase of XRP by 19.57% The past 24 hours $0.6175.
The coin’s losses from the last week have been completely wiped out with this new price. It has risen by 1.4%. Trading volume also reflects a bullish sentiment among traders. The metric has increased by 272% You can also find out more about the following: $5,516,807,550.
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