Home Crypto Market Movers XRP’s Legal Odyssey: Insights on Ripple’s Institutional Sales and Their Impact on the Crypto Market

XRP’s Legal Odyssey: Insights on Ripple’s Institutional Sales and Their Impact on the Crypto Market

XRP

In a recent tweet, Attorney John Deaton, the founder of Crypto-law, made a surprising revelation regarding the acquisition of XRP by institutional investors. His statement has generated intrigue and opened up discussions about the ongoing legal battle surrounding Ripple’s XRP. This revelation comes at a time when the crypto market is experiencing significant volatility, with XRP’s price surging over 9.3% in the past 24 hours.

Attorney Deaton expressed his belief that it wouldn’t be surprising if institutional investors hadn’t acquired XRP above $0.60. This statement highlights a crucial aspect of the ongoing 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 leverages XRP as a bridge between two fiat currencies during cross-border settlements, facilitating faster and more cost-effective transactions. Users are required to acquire XRP to utilize this innovative solution.

The ongoing legal battle between the SEC and Ripple has raised important questions about the appropriate remedies for Ripple’s alleged violation of federal securities laws concerning its institutional sales of XRP. Attorney Jeremy Hogan 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, initiated in 2021, involved the SEC charging the defendant with engaging in a fraudulent securities scheme through a company named 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 an appellate review. Interestingly, the U.S. Court of Appeals for the Second Circuit overturned the lower court’s decision and remanded the case.

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 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 arises 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 concurred 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 eyes are on the potential impact on Ripple’s legal and financial situation.

In the midst of this legal battle, XRP’s price has surged over 9.3% in the past 24 hours, currently trading above $0.60. According to data from CoinGecko, XRP is priced at $0.68, reflecting the crypto market’s resilience and XRP’s popularity among investors.

As the crypto world watches these legal developments unfold, it’s clear that XRP’s price and its legal standing are intertwined. The potential ramifications of the SEC v. Ripple lawsuit could not only affect Ripple as a company but also influence the broader crypto market.

The uncertainty surrounding this legal battle and its potential impact on the crypto market adds an extra layer of 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.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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