Ripple’s Rollercoaster: SEC Backs Down, But Not All Is Smooth Sailing!

In a plot twist nobody saw coming (but maybe should have), the U.S. Securities and Exchange Commission (SEC) has pulled the plug on its appeal in the Ripple saga. Yes, you read that right—the SEC decided it was too much drama to continue challenging Judge Analisa Torres’s 2023 ruling on whether XRP is a security. It’s like they finally realized we have enough problems without adding more legal soap operas to the mix! 🎭

Judge’s Ruling on XRP Sales

So, Judge Torres threw a party of one when she declared Ripple’s “programmatic sales” of XRP on secondary exchanges safe and sound. However, the SEC didn’t bring snacks for the direct sales to institutional investors because, surprise, that violated securities laws. But fear not! With the SEC throwing in the towel on their appeal, it looks like this ruling might actually mean something in the crypto world. 🙌

Settlement Details: SEC Returns $75 Million

In what feels like a half-hearted attempt at contrition, the SEC agreed to return $75 million of the original $125 million fine that a judge slapped Ripple with. So, um, at least they’re not keeping the whole enchilada? They’re leaving $50 million to settle the case—because why settle for less when you can settle for half? 💰

Ripple’s Future Sales to Institutional Investors

In the midst of this thrilling ride, a user on X (formerly Twitter) chirped that with the SEC’s injunction lifted, Ripple can now flirt with institutional investors directly. But hang on a second—Ripple still has to play nice with securities laws. No more sneaking around OTC desks; they can now waltz on over to hedge funds and private equity firms!💃

Clarification from Former SEC Attorney

But hold your applause! Former SEC lawyer Marc Fagel popped in to clarify that while the SEC is out of the picture, the original ruling still says Ripple’s sales to institutional investors are a no-go. Yup, just because you got a reprieve doesn’t mean there aren’t still some landmines in the yard. ⚠️

I haven’t gone back to revisit the order. But to the extent any future sales are sold in similar fashion as the institutional sales described in the order, they would continue to pose problems under Section 5 (at least if the SEC were still invested in the case).

— Marc Fagel (@Marc_Fagel) March 25, 2025

Fagel elaborated that, while the SEC won’t be knocking down Ripple’s door, there could still be pesky legal challenges under Section 5 if they try to sell XRP like they did in the past. Because that’s the fun of crypto: navigating a minefield and praying you don’t blow up! 💣

Impact on Ripple’s On-Demand Liquidity Product

And what about Ripple’s On-Demand Liquidity (ODL) product? Fagel thinks the ruling might help lift some of the pesky rules weighing Ripple down. But, of course, if they decide to go back to their old illegal ways, they’re still leaving the door open for legal headaches. It’s like having a “Get Out of Jail Free” card, but realizing you didn’t read the fine print! 🃏

2025-03-27 06:08

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