A Federal Judge Rules on Ripple’s XRP Sales
In a recent ruling, a federal judge determined that while Ripple’s direct sales of XRP to institutional investors violated securities law, its programmatic sales to retail investors through exchanges did not. However, the U.S. Securities and Exchange Commission (SEC) plans to file an “interlocutory appeal” of this decision, seeking to appeal certain aspects of the ruling while the rest of the case proceeds to trial.
Key Points:
- Ripple’s direct sales of XRP to institutional investors were found to violate securities law.
- However, the programmatic sales of XRP to retail investors through exchanges were deemed not to involve the offer or sale of securities.
- The SEC plans to file an appeal of the ruling, seeking to challenge the court’s decision on programmatic sales.
- A trial on other issues that were not ruled on initially has been tentatively scheduled for the second quarter of 2024.
- Ripple will have to respond to the SEC’s appeal by August 16, 2023, and the SEC proposes filing an opening brief on August 18.
Hot Take:
This ruling and the SEC’s decision to appeal highlight the ongoing regulatory uncertainty surrounding cryptocurrencies like XRP. As the case proceeds to trial and further appeals are made, it remains to be seen how the legal status of XRP and similar cryptocurrencies will be determined. This uncertainty can have significant implications for the crypto industry as a whole and may impact investor confidence in these assets.
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