The situation surrounding institutional XRP sales by Ripple has garnered attention following a recent court ruling. Judge Analisa Torres denied a settlement proposal between Ripple and SEC, maintaining existing restrictions.
Court Ruling on Ripple and SEC Lawsuit
Judge Analisa Torres rejected a $50 million settlement proposal between Ripple and SEC, which would have lifted the permanent ban on institutional XRP sales.
Though both parties agreed to reduce the original $125 million fine by 60%, the June 26 order keeps Ripple’s business restrictions in place. The judge emphasized that the parties did not present the ‘exceptional circumstances’ needed to overturn a final ruling. She stated that the public interest in enforcing securities laws is paramount over private settlement agreements.
As a result, XRP cannot be officially sold by institutions; however, retail trading will proceed as usual.
Compliance Challenges and Ripple's Next Steps
When Ripple sells XRP to institutions, it must ensure compliance with the Securities Act, otherwise it risks violating the injunction. According to lawyer Bill Morgan, Ripple likely received legal advice on conducting legitimate sales of XRP.
Lawyer Marc Fagel indicated that Ripple might still pursue institutional sales after registering with SEC, provided they adhere to securities rules. 'I believe they would be able to sell pursuant to a registered securities offering,' he stated.
The platform won't be able to sell XRP to institutions unless it files for an indicative decision again. Lawyer Fred Rispoli speculated that both Ripple and SEC would likely drop their cases and settle, leaving Judge Torres' ruling intact.
Ripple's Plans to Expand Institutional Sales and Integrate XRP
Ripple is exploring various avenues to continue its business. Institutions can create compliant DeFi products, such as tokenized bond markets, by launching permitted domains available only to verified participants, thus mitigating legal concerns.
Moreover, it is expected that by Q3 2025, Ripple will offer direct on-chain lending without collateral requirements in institutional lending. The rollout of the RLUSD stablecoin and real-world assets (RWAs) is also anticipated, contributing to the maturation and stability of the DeFi ecosystem.
Ripple has already partnered with Wormhole to enhance multichain interoperability on the XRP Ledger and its upcoming XRPL EVM Sidechain.
Additionally, Ripple plans to further integrate XRP into institutional finance with the acquisition of Hidden Road for $1.25 billion, strengthening its role in decentralized finance and cross-margining between digital and traditional assets.
In conclusion, Ripple remains under legal constraints while actively developing plans to expand institutional sales and integrate XRP into financial products. The future of the token remains uncertain, and the community continues to closely monitor developments.
