Ripple continues to encounter legal issues surrounding the classification of past institutional XRP sales as unregistered securities offerings.
Court Decision and Its Consequences
The court upheld an earlier ruling classifying Ripple's institutional XRP sales as unregistered securities offerings. This decision maintains a financial penalty and a ban on institutional sales, raising questions about whether Ripple will appeal or accept the ruling.
Possible Actions for Ripple
Some legal experts believe Ripple anticipated this outcome. For example, lawyer Bill Morgan suggested that the company had adapted its sales strategy in response to previous court rulings. However, other experts, like attorney Marc Fagel, argue that Ripple could still pursue institutional sales but only under a registered securities offering, requiring compliance with regulatory norms.
Analysis of Legal Implications
There is speculation that both Ripple and the SEC may eventually drop further appeals and end the legal saga. However, it is clear that Ripple's future institutional sales remain constrained by securities laws. Unless Ripple aligns its operations with regulatory requirements, its options will remain limited.
Ripple faces increasing legal hurdles that could impact its future institutional strategies. The company's success in this area will depend on its ability to adapt to regulatory requirements.
