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The SEC claims Ripple's current ODL sales practices resemble previous regulatory violations.
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The judge lacks enough evidence to determine if Ripple's ODL sales are illegal.
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The SEC continues to demands $2 billion in fines, while Ripple argues for a maximum of $10 million.
The long-standing legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has taken a new turn, intensifying the debate over Ripple’s On-Demand Liquidity (ODL) sales.
Recent developments and allegations by the SEC accuse Ripple of engaging in ODL sales practices similar to the conduct that previously resulted in violations. As the trial progresses, the legal experts have weighed their views on the ongoing lawsuits.
SEC’s Accusations Over ODL Sales
In a recent tweet, pro-XRP lawyer Bill Morgan disclosed ongoing concerns from the SEC regarding Ripple’s business practices. Morgan’s insights come in response to the SEC’s reaction to Ripple’s letter about the TerraForm Labs Consent Judgment, shedding light on the continued regulatory scrutiny faced by Ripple.
The SEC asserts that Ripple continues to engage in conduct “awfully similar” to the conduct that resulted in the violation in the first place. There is a warning but what can the Judge do with that as the record before her does not allow her to decide if Ripple’s current ODL… https://t.co/agrTohdpzy
— bill morgan (@Belisarius2020) June 14, 2024
Bill Morgan revealed that the SEC accuses Ripple of engaging in ODL sales practices behavior “awfully similar” to the conduct that previously resulted in violations. This complicates the legal landscape for Ripple’s ODL service, which is central to their business model.
Court Lacks Sufficient Grounds
According to Morgan, there’s not enough evidence for the judge to decide if Ripple’s current On-Demand Liquidity (ODL) sales break any rules. The situation is more complicated because the SEC might appeal the summary judgment made in July.
Despite past regulatory actions, the SEC suggests that Ripple’s current operations continue to raise red flags. Morgan emphasized that while there is a warning from the SEC, the judge overseeing the case might face limitations.
SEC Demand $2B In Fine
Meanwhile, Pro-XRP lawyer Fred Rispoli predicts that Judge Torres will rule on remedies by the end of July or early August. The SEC is seeking $2 billion in fines and penalties, while Ripple argues the penalty should be no more than $10 million.
This is splitting hairs from Marc's answer, but the SEC cannot appeal anything to do with its claims against Brad and Chris relating to Institutional Sales, which the SEC agreed to dismiss with prejudice. The SEC could still appeal its claims against both for Programmatic Sales.
— Fred Rispoli (@freddyriz) June 13, 2024
Despite talk of a settlement, Rispoli thinks the chances are currently 0%. However, the SEC and Ripple could still settle some issues that the judges need to address in their ruling.
Impact On XRP Price
The ongoing legal uncertainty has significantly affected XRP’s market performance. As of now, XRP is trading with bearish sentiment, down 0.43% to $0.48. Despite these fluctuations, the XRP trading volume has seen a surge of 8% and hovering at $1.1 billion, with a market cap of $26.5 billion.