Surprising Reason Why Ripple Might Appeal Court Decision

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As an experienced crypto investor and founder of digital securities platform CapSign, I have seen my fair share of market volatility and regulatory battles. The recent court decision against Ripple has certainly raised some eyebrows, but I believe they will appeal this ruling.

According to Matt Rosendin, the creator of CapSign’s digital securities platform, it is expected that Ripple, headquartered in San Francisco, may choose to challenge the recent court ruling mandating an injunction by filing an appeal.

According to U.Today, Ripple was ordered to pay a penalty of $125 million in the final verdict. This is considered a major victory for the company since the requested amount by the SEC was $2 billion, making the actual penalty significantly lower.

Additionally, Torres took legal action by issuing an order restraining the San Francisco firm, aimed at halting any future breaches of securities regulations.

Although the court’s wording is unspecific, Rosendin interprets this injunction as requiring U.S. institutions to acquire XRP tokens from marketplaces instead of directly from the company. This interpretation could potentially make it more difficult for the On-Demand Liquidity (ODL) product to gain traction in U.S. markets, as suggested by Rosendin.

Simultaneously, he asserts that Ripple doesn’t necessarily have to sell XRP to U.S. institutions directly in order for it to thrive.

According to Rosendin, Ripple has the ability to offer XRP tokens to institutions; however, they require an exemption from federal securities regulations to do so. He further stated that the only applicable exemption for Ripple is Regulation A, but this limit XRP sales through ODL to $75 million per year, which isn’t satisfactory at all.

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2024-08-09 08:34