XRP Lawsuit: Ripple Can Sell to Institutions Despite Recent SEC Ruling

Amid the current XRP lawsuit development, Attorney Jeremy Hogan has cleared the doubts regarding Ripple’s ODL sales, which include the use of XRP as a bridge for cross-border settlements. He added that the institutional sales for XRP can continue and that wouldn’t be much of an issue going ahead.,On Wednesday, August 7, the US District Judge slapped a $125 million penalty on Ripple over the institutional sales of XRP that violated the securities laws in the ongoing SEC lawsuit.,Clearing the air over the ODL sales that use XRP, attorney Jeremy Hogan said that this shouldn’t be a big issue “at all” moving ahead. The attorney added that a majority of Ripple’s ODL sales are outside the US jurisdictions and not subject to the SEC ruling.,Attorney Hogan noted that Ripple can still continue to use these ODL sales, however, it needs to be careful about how it does. Hogan pointed out five primary exemptions that would be easier to apply if the company is selling to businesses.,The attorney added that the judge didn’t provide the On-Demand Liquidity (ODL) language it sought. This means that if the SEC believes that the blockchain startup violated the court order, it can file for another contempt and provide evidence for this violation. This would further allow the blockchain startup to argue there can be no exemptions in profit if the use of XRP is very brief during the ODL transactions.,Furthermore, Hogan emphasized that Ripple’s legal team has access to the summary judgment for over a year. He believes that the company has likely adjusted its XRP sales to ensure compliance. However, whether Ripple has “gotten too close to the line,” as the judge suggested, will only be determined if a contempt hearing occurs.,XRP lawyer Bill Morgan also appreciated the analysis from Attorney Hogan. He wrote:,Also Read: Ripple Boosts UAE Crypto Adoption With Major Partnership,Hours after the SEC announced the penalty, the XRP community cheered as the actual penalty amount was much less than the $2 billion penalty demanded by the SEC. The XRP price has surged by a staggering 20% shooting past $0.60. Market analysts have now started talking about a possible XRP ETF going ahead.,,