Ripple secures partial victory in SEC lawsuit, facing $120M penalty instead of $2B.
Ruling sparks debate on implications for XRP and ODL services.
Experts divided on whether this is a decisive win for Ripple or just another chapter in the legal battle.
Ripple scored a partial win in its legal battle with the SEC, with a judge ordering a $120 million penalty instead of the $2 billion sought by the regulator. The ruling also touched on Ripple’s On-Demand Liquidity (ODL) service. Experts are divided on whether this marks a decisive victory for Ripple or just another chapter in a complex saga that started almost four years ago.
Ripple’s Chief Technology Officer David Schwartz and crypto influencer ScamDaddy, engaged in a lively debate on X (formerly Twitter) regarding XRP’s use in ODL transactions. The discourse centered on whether the recent injunction restricts such use.
A lot of people are still claiming Ripple can still use XRP for ODL transactions in the US. This is MISINFORMATION.Judge Torres issued an injunction against Ripple for their Section 5 violations, which was for institutional sales.What was included in those sales? ODL was 👇 pic.twitter.com/WLAguzoqcq
— 𝕾𝖈𝖆𝖒𝖘 𝖆𝖗𝖊 𝖇𝖆𝖉 (aka. ScamDaddy𐦐) (@ScamDetective5) August 8, 2024
Taking account of the claims suggesting Ripple’s XRP use for ODL transactions, ScamDaddy posited that it is just a matter of “misinformation.” In response to ScamDaddy’s post, Ripple’s CTO criticized him for not distinguishing between XRP’s use and sales. He slammed the expert, citing, “You aren’t quite high enough.”
XRP advocate Bill Morgan also voiced concerns about the lack of clarity in Judge Analisa Torres’ injunction, questioning the judge’s equation of equating ODL sales with institutional sales. He highlighted the lack of explanation for classifying these sales as investment contracts.
In a subsequent post, Morgan replied to Matt Rosendin, the founder of the blockchain firm CapSign. While Rosendin commented on the ODL’s return to the US, adding that the judge’s injunction doesn’t matter for ODL in the US, Morgan responded, “The injunction matters.” Morgan’s critical statement was based on the lack of clarity in the injunction and its potential implications for ODL sales.
Here is why the SEC might choose to appeal the @Ripple judgment.We will know in 60 days, or less. 👇 pic.twitter.com/RrG013L1ha
— MetaLawMan (@MetaLawMan) August 8, 2024
Another important headline that caught the XRP Army’s attention is the debate over the possible appeal following Judge Torres’ latest ruling. Legal expert James Murphy (MetaLawMan) predicts the SEC will likely appeal the ruling, adding that the regulator’s response could be known within the next two months.
The post Ripple’s Partial SEC Win: ODL’s Future in Spotlight appeared first on Coin Edition.
