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SEC Blames Ripple Over ODL Sales, Reflects Past Violations

Posted on by Vaseline

The long-standing legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has taken a new twist, intensifying the debate over Ripple’s On-Demand Liquidity (ODL) sales.

Recent developments and allegations from the SEC accuse Ripple of engaging in ODL sales practices similar to the conduct that previously led to violations. As the trial continues, legal experts have weighed in on the pending lawsuits.

SEC’s Allegations About ODL Sales

In a recent tweet, pro-XRP attorney Bill Morgan disclosed ongoing SEC concerns about Ripple’s business practices. Morgan’s insights are in response to the SEC’s response to Ripple’s TerraForm Labs Consent Judgment letter, and shed light on the ongoing regulatory scrutiny Ripple faces.

Bill Morgan revealed that the SEC is accusing Ripple of engaging in ODL sales practices that are “terribly similar” to the behavior that previously led to violations. This complicates the legal landscape for Ripple’s ODL service, which is central to their business model.

Court has insufficient grounds

According to Morgan, there is not enough evidence for the judge to decide whether Ripple’s current On-Demand Liquidity (ODL) sales violate the rules. The situation is more complicated because the SEC could appeal the summary judgment granted in July.

Despite previous regulatory actions, the SEC suggests that Ripple’s current activities continue to raise red flags. Morgan emphasized that while there is a warning from the SEC, the judge overseeing the case may face restrictions.

SEC demands $2 billion fine

Meanwhile, pro-XRP attorney Fred Rispoli predicts that Judge Torres will rule on legal remedies in late July or early August. The SEC is seeking $2 billion in fines and penalties, while Ripple says the fine should not exceed $10 million.

Although there is talk of a settlement, Rispoli currently estimates the chance at 0%. However, the SEC and Ripple can still settle a number of issues that the judges must 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 a bearish sentiment, down 0.43% to $0.48. Despite these fluctuations, XRP trading volume has seen an 8% increase and is hovering at $1.1 billion, with a market capitalization of $26.5 billion.