Sign Up on MEXC
Crypto News: While the XRP lawsuit Summary Judgment paved way for unraveling potential in the United States, there are many facets to the ruling that require further scrutiny. Earlier in July 2023, Judge Analisa Torres ruled that the sale of Ripple’s XRP token does not constitute illegal securities sales, as was alleged by the U.S. Securities and Exchange Commission (SEC). Judge Torres ruled that sale of the tokens to retail buyers do not amount to securities while the sale to institutional buyers remain security sales.
Also Read: FUD Alert: Reports Of US DOJ Fraud Charges On Binance Resurface
Meanwhile, Southern District of New York Judge Jed Rakoff contested Judge Torres’ verdict by allowing the SEC to proceed with its lawsuit against Terraform Labs and founder Do Kwon. This essentially meant that Judge Rakoff rejected the ruling that retail token sales are not securities. In a latest, attorney Bill Morgan raised the question of the Ripple on-demand liquidity (ODL) linked sales, which was earlier flagged by the company’s chief technology officer David Schwartz.
XRP ODL Sales: Securities Or Not?
The attorney wondered if the ODL sales can be justified as securities, even if the institutional clients hold the XRP tokens for mere seconds. The Ripple ODL transactions involve customers holding XRP for a few seconds to facilitate quick cross-border payments. This means it is used just as a means for payments and does not necessarily involve the tokens as an investment. Attorney Morgan said,
“Still waiting for the day someone in the XRP community justifies the Torres decision for lumping sales to ODL customers with institutional sales on any reasoning consistent with Howey principles.”
Meanwhile, the XRP price has been on a steady decline in the last seven days, dropping from the highs it reached following the Summary Judgment.
Also Read: Early Terra Luna Classic Developers Seek Return To Revive LUNC & USTC To $1
- Shiba Inu Update: SHIB Team Freezes 4.6M BONE Following Shibarium Bridge Hack Warning
- Trump-Backed WLFI Token Signals Rebound As Team Announces Buyback Plan
- Bitcoin ETF Inflows Shoot $642M Before Fed Rate Cut Catching Up With Gold Rally
- Analyst Predicts SUI Breakout as Group Approves $50M Buyback Program
- BlackRock Dumps Ethereum, Buys $366M in Bitcoin
- Pi Coin Price Prediction As Adam & Eve Pattern Signals Breakout Rally To $0.45 Ahead
- HBAR Price Prediction Amid DTCC Listing and Archax Expansion — Is $0.50 Next?
- Ethereum Price Eyes a 40% Surge as Morgan Stanley Shifts Fed Cuts Forecast
- Solana Price Prediction: Ford’s $1.65B Treasury Bet Sets Sights on $320
- Dogecoin Price Prediction as CleanCore Pushes Toward 1B DOGE Target- Is 92% Rally Ahead?
