The U.S. Securities and Exchange Commission (SEC) has officially dropped its appeal in the case against Ripple, marking the end of a four-year legal battle. However, the SEC has yet to confirm the latest developments. The future of XRP post-legal clearance remains a topic of discussion.
What Fagel Says About XRP Sales
Marc Fagel, a former SEC lawyer, explained that even if the injunction is lifted, the court's original ruling still holds. The court had ruled that Ripple's sales of XRP to institutional investors were illegal, implying that such sales might remain unlawful.
Room for Legal Flexibility
Fagel highlighted that not all sales to institutional investors require registration. Some transactions might qualify for special exemptions, depending on the specifics of the deals and their similarity to those previously deemed illegal. Given the SEC's reduced focus on crypto regulation, Ripple might avoid severe repercussions for similar future sales.
What’s Next for Ripple and XRP?
Ripple's future depends on how its legal team approaches future sales. Repeating past sales practices might pose legal issues, but the SEC's decreased involvement in crypto matters could ease Ripple's path forward.
Marc Fagel doubts Judge Torres will provide additional clarity on institutional XRP sales, having already made her ruling. Ripple is likely to request the injunction's removal, but a change in decision is unlikely.
