Ripple’s Institutional Sales Hang in the Balance as XRP Lawsuit Nears Conclusion

The XRP lawsuit continues to cast a shadow over Ripple’s ability to restart institutional sales, despite recent progress.

Ripple has recently withdrawn its cross-appeal in the legal battle with the SEC, leaving the status of the injunction that has halted its sales up in the air. While some believe Ripple might resume selling to institutional investors if the injunction is lifted, legal experts are debating the compliance conditions that would follow.

XRP attorney Bill Morgan recently addressed the issue, noting that even if the injunction were removed, Ripple would still need to adjust its approach to institutional sales. This change is necessary due to a previous ruling from Judge Analisa Torres, who had determined that Ripple’s original method of selling XRP to institutions constituted an investment contract.

The uncertainty surrounding Ripple’s future in this area has sparked considerable discussion, especially following Ripple CEO Brad Garlinghouse’s confirmation that the company had abandoned its cross-appeal against the SEC.

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With the possibility of the injunction being lifted, some believe Ripple could resume institutional sales, but others argue that the company would need to adhere to strict securities laws. For example, Ripple may need to alter how it sells XRP, potentially allowing direct sales to hedge funds or private equity firms, rather than going through over-the-counter desks.

The XRP community remains on edge as the legal drama unfolds, with experts like Morgan and Fred Rispoli offering their insights into what could happen next. Rispoli raised an intriguing philosophical question on X, pondering whether a company selling unregistered securities in the absence of SEC intervention would be acting unlawfully—a debate that touches on broader issues of regulation and compliance in the crypto industry.

Alexander Stefanov