Expert: Ripple Institutional Sales Not Banned Despite Court Ruling
CryptoNewsTerminal Staff07 Aug, 2024
Expert: Ripple Institutional Sales Not Banned Despite Court Ruling
Ripple Institutional Sales Not Banned Despite Court Ruling The recent ruling in a U.S. court case against Ripple has spurred speculation about the potential impact on the sale of XRP to institutions. However, experts believe that the ruling does not constitute a ban on such transactions. "The latest US court ruling does not mean institutions are banned from selling XRP," said Matt Rosendin, founder of cryptocurrency security platform CapSign. "Ripple would need to file for a securities exemption with the SEC (for institutional sales) and would need to publicly report the details of institutional sales." Rosendin added that this requirement would not apply to programmatic sales, where the buyer is unaware of the seller's identity. The court ruling, handed down by Judge Analisa Torres, ordered Ripple to pay $125 million in penalties related to XRP sales to retail investors. However, the judge did not find that these sales violated federal securities laws. Industry experts believe that Ripple is likely to comply with the SEC's requirements in order to continue offering XRP to institutions. By doing so, Ripple can maintain its position as a leading provider of cross-border payment solutions.
