XRP Price Fluctuates as SEC Investigates Ripples ODL Practices
Key Points
The SEC has accused Ripple of violating securities laws with its On-Demand Liquidity (ODL) sales, raising concerns about the future of Ripple’s core business.
The legality of Ripple’s current ODL practices remains uncertain.
A settlement is unlikely, and the lawsuit is impacting the price of XRP.
The conflict between Ripple and the SEC has intensified, with the SEC alleging that Ripple’s ODL sales are in violation of securities laws. This development has significant implications for Ripple’s future and could lead to fluctuations in the price of XRP.
Can Ripple defend its ODL practices? What does this mean for XRP investors? Experts weigh in on the matter.
Fresh Allegations from the SEC
In a recent tweet, pro-XRP lawyer Bill Morgan drew attention to the SEC’s ongoing scrutiny of Ripple’s business operations. This scrutiny was sparked by Ripple’s letter regarding the TerraForm Labs Consent Judgment, highlighting the regulatory challenges facing Ripple.
The SEC claims that Ripple’s current ODL sales practices are alarmingly similar to past violations. This adds complexity to the legal landscape surrounding Ripple’s ODL service, a crucial aspect of its business model. According to Morgan, the evidence available to the judge does not provide a clear basis for determining the legality of Ripple’s current ODL sales.
The situation is further complicated by the possibility of the SEC appealing a judgment made in July.
Ripple’s Regulatory Struggles
Despite previous regulatory actions, the SEC remains concerned about Ripple’s ongoing operations. Morgan emphasized that while the SEC has issued a warning, the judge presiding over the case may face challenges in reaching a definitive decision.
Predictions and Potential Outcomes
Pro-XRP lawyer Fred Rispoli anticipates that Judge Torres will deliver a ruling on remedies by the end of July or early August. The SEC is seeking substantial fines and penalties, while Ripple argues for a much lower penalty.
Although settlement discussions have been mentioned, Rispoli believes the likelihood of a settlement is currently slim. However, the SEC and Ripple may still be able to address certain issues before the judges make their ruling.
Impact on XRP Price
The ongoing legal uncertainties have had a significant impact on XRP’s market performance. Currently, XRP is experiencing bearish trading, down 0.43% at $0.48. Despite this, XRP’s trading volume has increased by 8%, reaching $1.1 billion, with a market cap of $26.5 billion.
Find Out More:
Ripple vs SEC Verdict Expected in July: What’s in Store
Will Ripple successfully navigate the legal challenges, or will the SEC’s allegations prove costly? Keep an eye out for further updates on this ongoing legal battle.
Tags: Ripple (XRP)