XRP’s Legal Journey: Insights on Ripple’s Institutional Sales and Their Impact on the Crypto Market
In a recent tweet, Attorney John Deaton, the founder of Crypto-law, made an interesting revelation about the acquisition of XRP by institutional investors. This statement has sparked discussions about the ongoing legal battle surrounding Ripple’s XRP. These discussions come at a time when the crypto market is experiencing significant volatility, with XRP’s price increasing by 9.3% in the past 24 hours.
Attorney Deaton believes that it wouldn’t be surprising if institutional investors acquired XRP above $0.60. This emphasizes an important aspect of the dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the company behind XRP.
Deaton’s remarks exclude XRP purchases made by Ripple’s On-Demand Liquidity (ODL) clients. Ripple’s ODL solution utilizes XRP as a bridge between two fiat currencies during cross-border settlements, enabling faster and more cost-effective transactions. Users are required to obtain XRP to leverage this innovative solution.
The legal battle between the SEC and Ripple has raised questions about the appropriate remedies for Ripple’s alleged violation of federal securities laws in relation to its institutional sales of XRP. Attorney Jeremy Hogan has highlighted the potential impact of a recent Second Circuit ruling in the SEC v. Govil case on the outcome of the remedies phase in the Ripple lawsuit.
The SEC v. Govil case, which began in 2021, involved the SEC charging the defendant with participating in a fraudulent securities scheme through a company called Cemtrex. Despite Aron Govil’s willingness to return the proceeds obtained from the scheme, the regulator demanded additional disgorgement.
A federal court granted the SEC’s motion for additional disgorgement, prompting the defendant to seek appellate review. Interestingly, the U.S. Court of Appeals for the Second Circuit overturned the lower court’s decision and sent the case back.
The Second Circuit’s decision instructed the federal court to grant disgorgement only if Cemtrex investors suffered financial losses. Attorney Hogan suggested that XRP holders would need to have incurred losses for Ripple to be held liable during the penalty phase of the SEC lawsuit.
However, an XRP enthusiast pointed out that the damages sought by the SEC would only cover institutional investors who experienced financial losses. This limitation stems from Judge Analisa Torres’ ruling on July 13, which found that Ripple violated the law through its past sales of XRP to institutional clients.
Attorney Morgan agreed with the user’s perspective, emphasizing that Ripple could potentially be held liable only for institutional investors who acquired XRP above $0.60.
This legal perspective has significant implications for the ongoing SEC v. Ripple lawsuit and could shape the upcoming remedies phase. With the court already ordering the parties to propose a joint briefing schedule for this stage, all attention is focused on the potential impact on Ripple’s legal and financial situation.
Amidst this legal battle, XRP’s price has increased by 9.3% in the past 24 hours, currently trading above $0.60. According to data from CoinGecko, XRP is priced at $0.68, revealing the resilience of the crypto market and the popularity of XRP among investors.
As the crypto world observes these legal developments, it is evident that XRP’s price and its legal standing are interconnected. The potential consequences of the SEC v. Ripple lawsuit could not only affect Ripple as a company but also influence the wider crypto market.
The uncertainty surrounding this legal battle and its potential impact on the crypto market adds complexity to an already dynamic industry. It remains to be seen how the legal proceedings will unfold and what the ultimate consequences will be for Ripple, XRP, and the broader crypto ecosystem.