XRP News Today: Ripple Allowed to Sell XRP on Open Markets Despite SEC Ruling

The legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple is approaching its final stages, but there remains uncertainty regarding the current legal status of XRP and Ripple’s institutional sales.

Crypto expert Vincent Van Code has provided clarity on the matter, breaking down the court decisions and Ripple’s remaining options moving forward. According to Van Code, Judge Analisa Torres ruled in July 2023 that XRP, when traded on exchanges or in programmatic sales, is not a security. The judge stated, “XRP, as a digital token, is not in and of itself a ‘contract, transaction, or scheme’ that embodies the Howey requirements of an investment contract.” However, the court did label Ripple’s direct institutional sales of XRP as unregistered securities offerings, mainly because sophisticated investors bought it expecting profits tied to Ripple’s efforts.

Ripple has already paid the $125 million penalty, which is currently held in escrow, awaiting final resolution. Despite the injunction that restricts Ripple from making direct institutional sales, the company is still allowed to sell XRP on open markets without legal issues.

Van Code outlines two legal pathways Ripple can take to resume institutional XRP sales. The first is to register the offering as a security under the U.S. Securities Act of 1933. The second is to use exemptions like Rule 506(b) or Rule 506(c). If these are used, Ripple must file a Form D with the SEC within 15 days of the sale. These are standard practices for private placements and don’t imply wrongdoing, but they do come with strict compliance rules.

Despite legal hurdles, XRP’s price action remains bullish. Van Code believes institutional investors are still interested, seeing XRP as a long-term bet. He warns that short-term dips are often traps that push inexperienced traders out before a rally. “Ripple is operating legally and selling XRP in compliant ways,” Van Code concludes. “Don’t let short-term price volatility shake your confidence.”

The Ripple-SEC lawsuit may be nearing its conclusion, but institutional restrictions still exist, at least for now. XRP continues to show strength in the market, with rising investor confidence and growing legal clarity. As Ripple explores compliant sales routes, the token could see broader adoption and stronger institutional inflows in the coming months.