Ripple May Need to Halt Institutional XRP Sales Amid Legal Pressure
Ripple may soon be forced to rethink how it sells XRP to institutions after a federal judge refused to accept a proposed resolution between the company and the SEC.
The decision keeps in place an earlier ruling that classified Ripple’s past institutional XRP sales as unregistered securities offerings.
The court’s rejection maintains both a financial penalty and a ban on institutional XRP sales, raising questions about whether Ripple will push forward with an appeal or accept the decision. While the ruling doesn’t affect XRP’s general market status, it casts uncertainty on Ripple’s future institutional strategy.
Legal experts believe Ripple had already anticipated this outcome. Some say the company may have restructured how it engages with institutional clients post-2023 to remain within regulatory bounds. Lawyer Bill Morgan suggested that Ripple had adapted its sales framework in response to previous court findings.
Others, like attorney Marc Fagel, say Ripple could still pursue institutional sales—but only under a registered securities offering. This would require formal SEC compliance, a step that Ripple hasn’t yet taken.
Although there’s speculation that both Ripple and the SEC might eventually drop further appeals and end the legal saga, the broader implication is clear: unless Ripple aligns future institutional sales with securities laws, its options will remain limited.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
