Ripple Expected to Challenge Recent Court Ruling
Matt Rosendin, founder of digital securities platform CapSign, forecasts that Ripple, based in San Francisco, will likely challenge the recent court ruling that imposed an injunction.
Ripple was fined $125 million in the final judgment, a figure notably less than the $2 billion sought by the SEC. Despite this, the court also issued an injunction aimed at preventing further breaches of securities regulations.
Rosendin suggests that the injunction may force US institutions to acquire XRP tokens from the market instead of directly from Ripple, potentially hindering the adoption of Ripple’s On-Demand Liquidity (ODL) product in the US.
However, Rosendin believes Ripple can still succeed without selling XRP directly to US institutions, provided it secures a federal securities exemption.
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He points out that while Ripple could potentially sell XRP tokens to institutions, it would need an exemption under Regulation A, which limits annual sales for ODL to $75 million—a constraint that may not be ideal.
There is also speculation that the SEC might appeal the July 2023 decision, which deemed secondary XRP sales not to be securities, though a higher court ruling on this is unlikely this year, as noted by Fortune.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
