News View Non-AMP

Ripple vs SEC Heats Up: ODL Sales Don’t Qualify as Investments, Firm Argues

Published by
Mustafa Mulla

As the Ripple vs SEC legal battle escalates, the blockchain payments firm has filed an opposition citing that XRP sales on ODL do NOT count as investment contracts.

Pro-XRP lawyer Bill Morgan has made a compelling argument regarding Ripple’s On-Demand Liquidity (ODL) sales. Moreover, he emphasized that these ODL sales do not constitute investment contracts. Morgan’s assertion comes amidst Ripple Labs’ ongoing legal battle with the United States Securities and Exchange Commission (SEC) over the classification of XRP.

The Defenses Are Up!

Bill Morgan asserts that ODL contracts do not meet the criteria for investment contracts, highlighting that transactions on the platform serve distinct purposes from traditional investments. 

Ripple contends that customers utilize XRP for swift cross-border payments, holding the digital asset for mere seconds, thus distinguishing ODL sales from conventional investment transactions. Furthermore, Ripple’s contracts explicitly prohibit customers from expecting profit from XRP purchases. However, this argument strengthens Ripple’s position in challenging the SEC’s allegations.

Also Check Out: Expert Reveals Why Ripple Wants To Launch Stablecoin Now

Monica Long Testifies for Ripple

Furthermore, Monica Long, President of Ripple Labs, provided testimony supporting the blockchain company. She emphasized that Ripple’s subsidiaries serve ODL customers exclusively outside the U.S. 

Additionally, she clarified that Ripple itself does not engage directly with ODL customers. This testimony directly refutes the SEC’s claims regarding XRP’s ODL usage, underscoring Ripple’s position in the ongoing legal dispute. 

Ripple’s Counter-Offer

Recently Coinpedia reported that Ripple has agreed to pay a maximum penalty of $10 million, it strongly opposes the SEC’s demands for disgorgement and prejudgment interest. CEO Brad Garlinghouse is optimistic about Ripple’s position, especially considering recent events involving SEC lawyers. He warns of serious consequences from the SEC’s policies and expresses confidence in Ripple’s legal stance.

Ripple continues to defend itself against the SEC’s accusations regarding ODL sales, and the outcome of this legal clash will have significant repercussions. With legal arguments heating up and key Ripple figures standing firm, the final decision by Judge Torres holds great importance for both Ripple and the SEC.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Stablecoins Associated with First Digital Trust (FDT) Temporarily Depegs as Justin Sun Warns of Company’s Insolvency

In a surprising turn of events, Justin Sun, a prominent figure within the Tron (TRX)…

April 2, 2025

Trump Tariffs Live: Bitcoin Price Rallies To $87000 On ‘Liberation Day’

Cryptocurrency markets are experiencing fluctuations as traders brace for President Donald Trump's "Liberation Day" announcement,…

April 2, 2025

Grayscale Announces Launch of Two New Bitcoin ETFs: Here’s What They Are

Grayscale, a leading crypto asset manager, has introduced two new Bitcoin ETFs, offering a fresh…

April 2, 2025

Remember This Name! Remittix Presale Becomes the Top Predicted of 2025 as Project Raises Almost $15M in Record Time

In a year marked by conservatism and a sentiment shift in crypto, one name is…

April 2, 2025

Has Elon Musk Forgotten About Dogecoin (DOGE)?

Particularly for Dogecoin (DOGE), Elon Musk, the billionaire entrepreneur CEO of Tesla and SpaceX, has…

April 2, 2025

Shiba Inu Drops 9%, but RUVI AI’s (RUVI) Token Might Be the Meme Coin Killer as Investors Rush to Claim their Bonus

The cryptocurrency market is no stranger to ups and downs, and this week, Shiba Inu…

April 2, 2025