Lawyer Clarifies Why Injunction Won’t Affect Ripple’s Institutional Sales
The post Lawyer Clarifies Why Injunction Won’t Affect Ripple’s Institutional Sales appeared on BitcoinEthereumNews.com.
XRP lawsuit update: The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has led to widespread confusion about the scope of a recent injunction. Lawyer Fred Rispoli clarified that the injunction does not impact Ripple’s institutional sales moving forward. The explanation centers around the specific context of “institutional sales” as defined in the legal proceedings. Lawyer Breaks Down Institutional Sales Ban in XRP Lawsuit In the XRP lawsuit, the SEC alleged that Ripple’s sale of XRP tokens violated securities laws, with particular attention paid to the $728 million in sales to institutional investors. A judge ruled that XRP sales on public exchanges were legal, but the sale to institutional investors violated securities laws. As a result, the court imposed an injunction prohibiting Ripple from engaging in those types of sales. However, Rispoli pointed out that the term “institutional sales” is a defined term and only refers to the specific sales Ripple made from its inception through 2018. He explained that the injunction only applies to sales made in this specific time frame and does not restrict Ripple from continuing its business operations, including institutional sales moving forward. Rispoli further emphasized that the definition of institutional sales, as it pertains to the case, only applies to the period prior to 2018. Therefore, any sales Ripple made after that time would not fall under the injunction. Ripple has also adjusted its approach to sales since then, becoming more transparent with the SEC regarding institutional transactions. The current SEC regime under Gary Gensler’s leadership may have a more favorable stance toward Ripple’s approach, making the chance of future enforcement actions less likely. James Farrell Clarifies the Injunction’s Actual Scope James Farrell has weighed in on the misunderstanding of the injunction’s terms. According to Farrell, the injunction does…
