Ripple vs SEC: SEC Accuses Ripple Over ODL Sales Mirror Past Violations
The post Ripple vs SEC: SEC Accuses Ripple Over ODL Sales Mirror Past Violations appeared first on Coinpedia Fintech News
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.
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.
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.
