US SEC Challenges XRP ODL Sales by Ripple

US SEC Seeks Appeal and Challenges XRP ODL Sales by Ripple

The US Securities and Exchange Commission (SEC) is seeking an interlocutory appeal to Judge Torres’ ruling that programmatic sales of XRP are not securities. They are also requesting a stay on the district court proceedings. The SEC is specifically challenging XRP on-demand liquidity (ODL) sales by Ripple, as the company has only sold XRP in connection with ODL transactions since the lawsuit was filed.

Main Breakdowns:

SEC challenges XRP ODL sales as securities
Lawyer argues Judge Torres’ ruling on ODL sales is an error
SEC uses Ripple CEO’s comments to support their case
XRP price falls 2% following SEC’s letter
Ripple plans to file a response to deny any appeal

Lawyer Bill Morgan argues that the SEC is once again relying on Ripple’s market reports and CTO David Schwartz’s comments in the lawsuit. The SEC is also challenging the ODL sales of nearly $3 billion since the lawsuit was filed, stating that the judge’s ruling on ODL sales is a significant issue for Ripple.

Additionally, the SEC is using Ripple CEO Brad Garlinghouse’s comments suggesting that the lawsuit could take years to their advantage. They are urging the court to stay other proceedings, including pre-trial, while Ripple intends to invoke Morrison v. Nat’l Australia Bank for monetary relief for its ODL sales.

XRP Price Fell After SEC Letter

Following the SEC’s letter, the price of XRP has fallen by 2% in the last 24 hours, currently trading at $0.63. The trading volume has slightly increased during this period due to a selloff by traders.

However, Ripple’s Chief Legal Officer, Stuart Alderoty, clarifies that the SEC is not seeking to appeal against the decision that XRP is a security. Instead, they are focused on their losses related to the programmatic and individual sale of the token. Ripple plans to file a response to the SEC’s letter to deny any appeal and will also work on their own appeal against the classification of XRP ODL sales as securities.

Hot Take

The SEC’s ongoing legal battle with Ripple and the challenges to XRP ODL sales highlight the regulatory uncertainties surrounding cryptocurrencies. This case could have significant implications for the classification and regulation of digital assets in the future. Both Ripple and the SEC are actively defending their positions, and the outcome will likely have a lasting impact on the crypto industry.