XRP News Today: Ripple Faces Ban on Institutional XRP Sales After Court Ruling

Ripple, the blockchain-based payment protocol, may need to halt its institutional sales of XRP following a recent court decision. The ruling maintains an earlier classification of Ripple’s past institutional XRP sales as unregistered securities offerings, which includes both a financial penalty and a ban on such sales. This decision raises significant questions about Ripple’s future strategy, particularly in how it engages with institutional clients.

Legal experts suggest that Ripple had anticipated this outcome and may have already restructured its approach to institutional sales. Lawyer Bill Morgan indicated that Ripple had adapted its sales framework in response to previous court findings, potentially to remain within regulatory bounds. This adaptation could involve restructuring how it engages with institutional clients post-2023.

Attorney Marc Fagel offered another perspective, suggesting that Ripple could still pursue institutional sales but only under a registered securities offering. This would require formal compliance with the Securities and Exchange Commission (SEC), a step that Ripple has not yet taken. The broader implication is clear: unless Ripple aligns its future institutional sales with securities laws, its options will remain limited.

While the ruling does not affect XRP’s general market status, it casts uncertainty on Ripple’s future institutional strategy. There is speculation that both Ripple and the SEC might eventually drop further appeals and end the legal saga. However, the current decision underscores the need for Ripple to comply with securities regulations if it wishes to continue institutional sales of XRP.