According to U.Today, San Francisco-based company Ripple has submitted a reply letter supporting its request to seal documents related to the U.S. Securities and Exchange Commission's (SEC) motion for judgment and remedies. The company has announced that it has ceased selling XRP tokens through over-the-counter transactions. Ripple's current sales of XRP to customers for use with its On-Demand Liquidity (ODL) product do not include any of the relevant terms of the over-the-counter contracts, such as discounts offered to sophisticated counterparties.
Legal analyst Bill Morgan interpreted this statement as a significant setback for those who propagate fear, uncertainty, and doubt (FUD) that Ripple routinely suppresses the XRP cryptocurrency's price by offloading tokens on retail investors. Morgan stated, 'Ripple points out what by now should be obvious. Sales of XRP to ODL customers do not have any of the terms the Court found relevant in deciding over-the-counter contracts were investment contracts such as price discounts. Ripple offers no discounts to ODL customers based on the evidence I have seen and this statement to the Court.'
Ripple's ODL sales have a neutral impact on the XRP token's price, which has been consistently underperforming Bitcoin and the broader cryptocurrency market. In the letter, Ripple also maintains that its current financial statements are irrelevant to the court's analysis as the company is not arguing that it will not be able to pay potential fines and penalties. The SEC is seeking to compel Ripple to provide information concerning its sales, revenues, and current assets. However, Ripple argues that revealing such sensitive details could harm its business endeavors.