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Lawyer Says US SEC Challenging XRP ODL Sales Is A Big Concern For Ripple

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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

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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