NewsletterLawyer Says US SEC Challenging XRP ODL Sales Is A Big Concern For Ripple
US SEC seeks an interlocutory appeal to Judge Torres’ ruling that programmatic sales of XRP are not securities and to stay the district court proceedings, including the pretrial scheduling order. The SEC also challenges XRP on-demand liquidity (ODL) sales by Ripple as the company only sold XRP in connection with ODL transactions since the lawsuit was filed.
US SEC Challenges XRP ODL Sales by Ripple
Lawyer Bill Morgan said Judge Torres ruling that XRP ODL sales as institutional sales are securities was an error. Ripple is considering an appeal on it as the company continued to sell XRP only in connection with ODL transactions since the lawsuit filed by the US SEC in December 2020.
Morgan argues SEC is again using Ripple’s market reports and CTO David Schwartz’s comments in the lawsuit. Also, SEC is challenging the ODL sales of almost $3 billion since the lawsuit. He said, “judge’s ruling on ODL sales is a big issue for Ripple.”
In addition, SEC uses Ripple CEO Brad Garlinghouse’s comments on the lawsuit could take years in its favor, urging the court to stay other proceedings including pre-trial.
“If Ripple intends to invoke Morrison v. Nat’l Australia Bank, 561 U.S. 247 (2010), with respect to monetary relief for its ODL sales, as it did with respect to its Programmatic Sales, substantial discovery could be necessary to determine the validity of such claims.”
Also Read: Crypto Community Demands SEC Gary Gensler’s Resignation Amid Regulatory Dispute
XRP Price Fell After SEC Letter
XRP price fell 2% in the last 24 hours, with the price currently trading at $0.63. The 24-hour low and high are $0.628 and $0.662, respectively. However, the trading volume has increased slightly in the last 24 hours amid a selloff by traders.
However, Ripple CLO Stuart Alderoty said US SEC is not seeking to appeal against the decision of XRP being a security, it is rather on its losses on the programmatic and individual sale of the token. Also, Ripple will file a response to the SEC’s letter to deny any appeal and work on Ripple’s appeal against XRP ODL sales as securities.
Read More: Ripple Response To US SEC Appeal Filing Next Week
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Operation Choke Point: House Republicans Spotlight Biden Administration’s ‘Attack on Crypto’
- Polymarket Rival Kalshi Moves On-Chain With Launch of Tokenized Prediction Markets on Solana
- Tom Lee Says Bitcoin Could Hit New ATH In January As Hassett Becomes Favorite For Fed Chair
- 8 Best Crypto Exchanges That Accept PayPal Deposits and Withdrawals
- Jerome Powell Speech Today: What To Expect as Fed Ends QT
- Ethereum Price Crashes Below $3,000 as $500M Longs Liquidated: What’s Next?
- Pi Network Price Prediction Ahead of December’s 190M Scheduled Unlock
- Dogecoin Price Below $0.15 as Crypto Market Crashes: Will $0.10 Hold?
- Will the Binance Coin Price Rebound as a Key RWA Metric Jumps 99%
- AVAX Price Prediction After Bitwise Files for a Staking ETF — A Rebound Coming?
- Will Chainlink Price Soar to $20 with U.S. Spot ETF Launch?
