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Mustafa Mulla
Mustafa Mulla
Author
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.
- Apr 23, 2024 11:28 UTC
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Ripple vs SEC Heats Up: ODL Sales Don’t Qualify as Investments, Firm Argues
Ripple argues ODL sales differ from investment contracts, disputes SEC allegations.
Ripple agrees to pay $10 million but opposes SEC's demands for disgorgement.
Monica Long testifies, confirming Ripple's subsidiaries handle ODL sales outside the U.S.
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.
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