XRP Price Wobbles as SEC Questions Ripple’s ODL Practices

The war between Ripple and the SEC just got hotter! The SEC is accusing Ripple of using its core business practice, On-Demand Liquidity (ODL) sales, in a way that violates securities laws. This raises serious questions about Ripple’s future and could have a big impact on the price of XRP.

Will Ripple be able to defend its ODL practices? What does this mean for XRP investors?

Read on to find out what experts are saying.

New Allegations from the SEC

In a recent tweet, pro-XRP lawyer Bill Morgan highlighted the SEC’s ongoing concerns regarding Ripple’s business practices. Morgan’s insights were a response to the SEC’s reaction to Ripple’s letter concerning the TerraForm Labs Consent Judgment, shedding light on the continued regulatory scrutiny faced by Ripple.

Morgan disclosed that the SEC claims Ripple’s current ODL sales practices are “awfully similar” to the conduct that previously resulted in violations. This complicates the legal landscape for Ripple’s ODL service, which is central to their business model. According to Morgan, there’s insufficient evidence for the judge to determine whether Ripple’s current ODL sales breach any regulations.

The situation is further complicated by the possibility of the SEC appealing the summary judgment made in July.

Ripple’s Ongoing Regulatory Challenges

Despite past regulatory actions, the SEC suggests that Ripple’s current operations continue to raise red flags. Morgan emphasized that while the SEC has issued a warning, the judge overseeing the case might face limitations in making a definitive ruling.

Predictions and Possible Outcomes

Pro-XRP lawyer Fred Rispoli predicts that Judge Torres will rule on remedies by the end of July or early August. The SEC is seeking $2 billion in fines and penalties, while Ripple argues the penalty should be no more than $10 million.

Despite discussions of a potential settlement, Rispoli believes the chances are currently zero. However, the SEC and Ripple could still resolve some issues that the judges need to address in their ruling.

Impact On XRP Price

The ongoing legal uncertainty has significantly affected XRP’s market performance. Currently, XRP is trading with bearish sentiment, down 0.43% to $0.48. Despite these fluctuations, the XRP trading volume has surged by 8%, reaching $1.1 billion, with a market cap of $26.5 billion.

Will the SEC prevail, or will Ripple find a way to adapt its ODL practices? Stay tuned for further developments in this ongoing legal battle.