Here’s Why Ripple Might Appeal Groundbreaking XRP Court Ruling ⋆ ZyCrypto
The post Here’s Why Ripple Might Appeal Groundbreaking XRP Court Ruling ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     On Wednesday, a federal judge brought the long-pending Securities and Exchange Commission (SEC) court battle to a close, imposing a $125 million penalty on Ripple. The penalty is much closer to Ripple’s bid than the $2 billion the SEC had sought — causing the price of XRP to skyrocket over 20%. Ripple executives and other crypto spectators hailed the ruling as a key victory. Nonetheless, Matt Rosendin, the founder of the blockchain infrastructure and tokenization platform CapSign, predicted that Ripple would likely appeal the court decision. Is A Ripple Appeal Possible? You see, despite the financial win, Judge Analisa Torres also imposed an injunction against Ripple, enjoining the company to refrain from violating securities laws in the future. In her decision, Torres pointed to Ripple’s “willingness to push the boundaries” of the law after the SEC lodged its initial lawsuit, contending that there is a likelihood the company will eventually “cross the line”. CapSign’s Matt Rosendin suggested that this injunction forces US institutions to buy XRP from the market rather than at a discount directly from Ripple. In Rosendin’s opinion, this would present adoption hurdles for the On-Demand Liquidity (ODL) service and XRP liquidity in the US markets. Notably, he still thinks that Ripple does not need to sell XRP directly to US institutions to be successful. Rosendin has also noted that Ripple can sell XRP tokens to institutions, but it will need a federal securities exemption. “Such sales are exempt from SEC registration provisions,” he posited, adding: Advertisement   “The only practical exemption Ripple can claim is Regulation A, but that limits XRP sales for ODL to $75m per year, which is not ideal at all.” Although the case has reached its end, there is also speculation that the SEC could appeal Torres’ historic ruling from…
Filed under: News - @ August 9, 2024 9:22 pm