The legal battle between the Securities and Exchange American commission (Sec) and Ripple is finally in its last stage, but the confusion still persists on the current legal status of XRP and institutional sales of Ripple.
The expert in crypto, Vincent Van Code, gave clarity on the question, by decomposing the decisions of the court and in the remaining options of Ripple.
XRP is not security, but only on the free market
In a detailed article on X, Van Code reminded the community that judge Analisa Torres judged in July 2023 that XRP, when he was exchanged on scholarships or in programmatic sales, is not Security.
“XRP, as a digital token, is not in itself a” contract, transaction or diagram “which embodies Howey’s requirements of an investment contract,” said Judge Torres.
However, the court labeled the direct institutional sales of Ripple de XRP as the provids of unregistered titles, mainly because sophisticated investors bought it by expecting profits related to Ripple’s efforts.
Ripple paid the fine of $ 125 million, what is the next step?
According to Van Code, Ripple has already paid the penalty of $ 125 million, which is currently owned in receivership, pending final resolution.
Despite the injunction which prevents undulation from making direct institutional sales, the company is still authorized to sell XRP on the open markets without legal problems.
Can Ripple still sell for institutions?
Yes, but with restrictions.
Van Code describes two legal paths that Ripple can take to use the sales of institutional XRP:
- Record the offer as a guarantee under the American securities law of 1933.
- Use exemptions such as rule 506 (b) or rule 506 (C).
If these are used, Ripple must file a form D with the dry within 15 days of the sale.
These are standard practices for private internships and do not involve reprehensible acts, but they are delivered with strict rules of conformity.
XRP price forecasts: What awaits us?
Despite legal obstacles, the action of XRP prices remains optimistic:
- Up 361.6% in the past year
- Up 3.5% in the last 7 days
- More than 5.1% in the last 24 hours
Van Code believes that institutional investors are always interested, considering XRP as a long -term bet. He warns that short -term declines are often traps that push inexperienced traders before a gathering.
“Ripple works legally and sells XRP in accordance,” concludes Van Code. “Do not allow short -term price volatility to shake your confidence.”
Final reflections
The Ripple-SEC trial can approach its conclusion, but institutional restrictions still exist, at least for the moment. XRP continues to show force on the market, with an increase in investor confidence and increasing legal clarity. While Ripple explores the compliant channels, the token could see a wider adoption and stronger institutional entries in the coming months.
