The cryptocurrency sector is finally receiving the good news it has eagerly awaited for some time. Following the decision that XRP is not a security, exchanges like Coinbase and Kraken have rushed to list XRP, undeniably giving the industry a sudden boost. However, a decision made in court might have slipped many people’s attention, and the Ripple executives have spoken out about it.
Second Ruling on XRP
Even though the court stated that XRP is not a security, it ruled that corporate sales by Ripple within the United States could be securities. This exposed a great risk related to Ripple’s annual XRP sales. Would these sales come to a halt?
Leonidas, one of the most well-known figures in the Ripple ecosystem and a developer, posed the critical question about this issue. Leonidas pointed out that Ripple had programmed corporate sales according to their financial reports. It was observed that these ceased in the fourth quarter of 2019, and have been replaced by ODL sales. The preliminary decision underscored that ODL-focused sales are securities. What’s next?
Ripple is Determined about XRP Sales
David Schwartz, Ripple’s CTO and one of the most recognized names in the sector, responded to this issue. Schwartz indicated that they are currently trying to resolve this issue as Ripple. Ripple currently does not have ODL-focused sales in the US, and according to the CTO, the inability to do so does not pose a significant problem. The CTO stated that ODL sales will still be made in the US, the only condition being that the sold XRP is not sourced from Ripple.
This implies that XRP could be sold to corporations through other institutions. XRP sales have been seen negatively by investors and have always suppressed the XRP price. This restriction in the US is actually good news for XRP investors. However, Ripple aims to continue these sales and keep earning money, depending on the situation.
