Ripple has taken center stage in the ongoing legal battle with the US Securities and Exchange Commission (SEC), as the SEC accuses Ripple of engaging in On-Demand Liquidity (ODL) sales practices that mirror past violations. The SEC claims that Ripple’s current ODL sales resemble the conduct that led to previous regulatory penalties. However, experts believe that there is not enough evidence for the judge to determine if these sales are illegal. This adds complexity to the case, especially considering the SEC’s potential appeal of the summary judgment made in July.
Pro-XRP lawyer Bill Morgan revealed the SEC’s allegations, stating that Ripple’s ODL sales practices are “awfully similar” to past violations. This poses a significant challenge to Ripple’s business model, as ODL is central to their operations. Despite warnings from the SEC, the judge overseeing the case may face limitations in making a decision.
In terms of penalties, the SEC is demanding $2 billion in fines and penalties, while Ripple argues that the maximum penalty should be $10 million. The ruling on remedies is expected by the end of July or early August, and discussions of a settlement are still ongoing, although the chances of reaching an agreement are currently considered unlikely.
The uncertainty surrounding the legal proceedings has had a significant impact on the price of XRP. The cryptocurrency is currently trading with bearish sentiment, experiencing a 0.43% decrease to $0.48. However, XRP’s trading volume has seen an 8% surge, reaching $1.1 billion, with a market cap of $26.5 billion.