XRP News Today: What Ripple Can and Can’t Do After SEC Lawsuit
The post XRP News Today: What Ripple Can and Can’t Do After SEC Lawsuit appeared on BitcoinEthereumNews.com. The post XRP News Today: What Ripple Can and Can’t Do After SEC Lawsuit appeared first on Coinpedia Fintech News The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is finally in its last stage, but confusion still lingers over the current legal status of XRP and Ripple’s institutional sales. Crypto expert Vincent Van Code has provided clarity on the matter, breaking down the court decisions and Ripple’s remaining options moving forward. XRP Is Not a Security, But Only on the Open Market In a detailed post on X, Van Code reminded the community that Judge Analisa Torres ruled in July 2023 that XRP, when traded on exchanges or in programmatic sales, is not a security. “XRP, as a digital token, is not in and of itself a ‘contract, transaction, or scheme’ that embodies the Howey requirements of an investment contract,” stated Judge Torres. However, the court did label Ripple’s direct institutional sales of XRP as unregistered securities offerings, mainly because sophisticated investors bought it expecting profits tied to Ripple’s efforts. Ripple Has Paid the $125M Fine, What’s Next? According to Van Code, Ripple has already paid the $125 million penalty, which is currently held in escrow, waiting for final resolution. Despite the injunction that restricts Ripple from making direct institutional sales, the company is still allowed to sell XRP on open markets without legal issues. Can Ripple Still Sell to Institutions? Yes, but with restrictions. Van Code outlines two legal pathways Ripple can take to resume institutional XRP sales: Register the offering as a security under the U.S. Securities Act of 1933. Use exemptions like Rule 506(b) or Rule 506(c).If these are used, Ripple must file a Form D with the SEC within 15 days of the sale. These are standard practices for private placements…
The post XRP News Today: What Ripple Can and Can’t Do After SEC Lawsuit appeared on BitcoinEthereumNews.com.
The post XRP News Today: What Ripple Can and Can’t Do After SEC Lawsuit appeared first on Coinpedia Fintech News The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is finally in its last stage, but confusion still lingers over the current legal status of XRP and Ripple’s institutional sales. Crypto expert Vincent Van Code has provided clarity on the matter, breaking down the court decisions and Ripple’s remaining options moving forward. XRP Is Not a Security, But Only on the Open Market In a detailed post on X, Van Code reminded the community that Judge Analisa Torres ruled in July 2023 that XRP, when traded on exchanges or in programmatic sales, is not a security. “XRP, as a digital token, is not in and of itself a ‘contract, transaction, or scheme’ that embodies the Howey requirements of an investment contract,” stated Judge Torres. However, the court did label Ripple’s direct institutional sales of XRP as unregistered securities offerings, mainly because sophisticated investors bought it expecting profits tied to Ripple’s efforts. Ripple Has Paid the $125M Fine, What’s Next? According to Van Code, Ripple has already paid the $125 million penalty, which is currently held in escrow, waiting for final resolution. Despite the injunction that restricts Ripple from making direct institutional sales, the company is still allowed to sell XRP on open markets without legal issues. Can Ripple Still Sell to Institutions? Yes, but with restrictions. Van Code outlines two legal pathways Ripple can take to resume institutional XRP sales: Register the offering as a security under the U.S. Securities Act of 1933. Use exemptions like Rule 506(b) or Rule 506(c).If these are used, Ripple must file a Form D with the SEC within 15 days of the sale. These are standard practices for private placements…
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