Recent court ruling regarding Ripple and SEC has captured the attention of the crypto community. Attorney Fred Rispoli clarifies what the ban means for institutional sales of XRP.
Overview of Ripple and SEC Case
On August 7, 2024, Judge Annalisa Torres issued a final ruling in the long-standing legal battle, imposing a $125 million penalty on Ripple for violating securities laws through institutional XRP sales. A permanent injunction was also placed to prevent further violations of the Securities Act.
Meaning of the Ban on Institutional Sales
Fred Rispoli explained that the term 'Institutional Sales' is a strictly defined legal category pertaining only to activities of Ripple in the past, specifically from 2013 to 2018. Hence, the ban refers only to sales during that period and does not limit future operations of the company.
Ripple's Current Position Under SEC
With the new pro-crypto leadership at the SEC, Ripple has solidified its position despite earlier worries. The attorney highlighted that the company is providing clarity in separating 'Institutional Sales' from other sales, which helps mitigate risks and ensures Ripple can continue its operations and explore new opportunities in the market.
Fred Rispoli's clarifications offer valuable insight into Ripple’s ability to engage with institutional investors moving forward, despite past restrictions.
