HomeNewsSEC Claims Ripple's ODL Sales Violate Past Agreements: What's Next?

SEC Claims Ripple’s ODL Sales Violate Past Agreements: What’s Next?

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  • Ripple Labs’ legal issues continue as SEC claims current ODL sales mirror past regulatory violations.
  • SEC response to Ripple’s filings indicates significant similarities with previous issues, complicating the ongoing legal proceedings.

Ripple Labs is currently engaged in a legal battle with the Securities and Exchange Commission (SEC), which has recently responded to Ripple’s filings linked to the Terraform Labs Consent Judgment. This development highlights the SEC’s claims that Ripple’s On-Demand Liquidity (ODL) sales practices resemble those previously identified as violations by the agency.

Details of the SEC’s Legal Claims

The SEC has expressed concerns that Ripple’s current ODL sales closely mirror past activities that were deemed violations. These assertions came to light following Ripple’s latest legal submissions concerning the ongoing case. Bill Morgan, a lawyer observing the proceedings, stated that the SEC has criticized Ripple’s practices as being too similar to those previously flagged.

Progress and Potential Outcomes in the Legal Proceedings

The legal process is reaching a stage, with expectations of a possible final judgment being issued in July. There is also potential for the SEC to appeal a prior summary judgment by Judge Torres, which determined that Ripple’s sales of XRP were not security contracts. This ongoing uncertainty continues to loom over Ripple, with significant implications depending on the outcome.

Fred Rispoli, another lawyer monitoring the case, suggested that Judge Torres might decide on remedies by the end of July or early August. The SEC is advocating for fines and penalties totaling $2 billion, while Ripple argues that any penalties should not exceed $10 million. Rispoli noted the possibility of a settlement, although he assessed the current likelihood of such an outcome as minimal.

Impact on XRP’s Market Performance

Amid these legal proceedings, the market price of XRP has been affected, currently trading at $0.4759. Over the past 24 hours, the price has fluctuated, reaching a high of $0.4808 and a low of $0.4647. These price movements reflect the market’s reaction to the ongoing legal uncertainty surrounding Ripple and its financial operations.

Looking Forward

As Ripple continues in this legal landscape, the cryptocurrency sector is closely watching the outcome. The resolution of this lawsuit could set important precedents for how digital assets are regulated and managed. The final decisions in this case are expected to influence not only Ripple’s operational strategies but also broader regulatory approaches to blockchain technology and digital currencies.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628