Ripple Can Still Sell XRP to Institutions Despite SEC Lawsuit
- The SEC fined Ripple $125 million for institutional XRP sales, alleging securities law violations.
- Attorney Jeremy Hogan clarified that Ripple can continue On-Demand Liquidity (ODL) sales, mainly outside the US.
- Ripple needs to fit ODL sales into legal exemptions or register them to avoid further legal issues.
- XRP surged 20%, rising above $0.60, following the announcement of the penalty.
A critical insight from the analysis is that Ripple’s legal team has had access to the summary judgment for over a year, suggesting they have likely adjusted their XRP sales practices to ensure compliance.
The SEC ruling has significant implications for Ripple’s future. While the company can still facilitate international ODL transactions, careful navigation of legal exemptions will be crucial to avoid further penalties and maintain its operational momentum.
