The long-standing legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has taken a new turn, intensifying the debate over Ripple’s On-Demand Liquidity (ODL) sales. The SEC claims that Ripple’s current ODL sales practices resemble the conduct that previously resulted in regulatory violations, complicating the legal landscape for the company’s central business model.
SEC’s Accusations Over ODL Sales
According to pro-XRP lawyer Bill Morgan, the SEC accuses Ripple of engaging in ODL sales practices that are “awfully similar” to the conduct that led to past violations. This revelation comes from the SEC’s reaction to Ripple’s letter about the TerraForm Labs Consent Judgment, shedding light on the continued regulatory scrutiny faced by Ripple.
“The SEC asserts that Ripple continues to engage in conduct ‘awfully similar’ to the conduct that resulted in the violation in the first place. There is a warning but what can the Judge do with that as the record before her does not allow her to decide if Ripple’s current ODL…
— Bill Morgan (@Belisarius2020)
The SEC asserts that Ripple continues to engage in conduct “awfully similar” to the conduct that resulted in the violation in the first place. There is a warning but what can the Judge do with that as the record before her does not allow her to decide if Ripple’s current ODL… https://t.co/agrTohdpzy
— bill morgan (@Belisarius2020) June 14, 2024
Court Lacks Sufficient Grounds
Bill Morgan further explained that there’s not enough evidence for the judge to decide if Ripple’s current On-Demand Liquidity (ODL) sales break any rules. The situation is more complicated because the SEC might appeal the summary judgment made in July. Despite past regulatory actions, the SEC suggests that Ripple’s current operations continue to raise red flags.
SEC Demand $2B In Fine
Meanwhile, pro-XRP lawyer Fred Rispoli predicts that Judge Torres will rule on remedies by the end of July or early August. The SEC is seeking $2 billion in fines and penalties, while Ripple argues the penalty should be no more than $10 million. Rispoli believes the chances of a settlement are currently 0%, but the SEC and Ripple could still settle some issues that the judges need to address in their ruling.
Impact On XRP Price
The ongoing legal uncertainty has significantly affected XRP’s market performance. As of now, XRP is trading with bearish sentiment, down 0.43% to $0.48. Despite these fluctuations, the XRP trading volume has seen a surge of 8% and is hovering at $1.1 billion, with a market cap of $26.5 billion.
