Ripple says it has restructured its XRP sales strategy, emphasizing that it will ensure its future sales comply with the standard set by the court in the SEC lawsuit.
In an interesting development, Ripple recently released its Q4 2023 report, providing an update about the state of the crypto market and other events.
Additionally, the company updated its users and fans about its lawsuit with the U.S. Securities and Exchange Commission (SEC).
Ripple Changes XRP Sale Strategy to Comply With Legal Standard
According to the Q4 2023 report, Ripple stated that it has changed its XRP sales strategy to “conform to legal standards articulated by the court.”
The San Francisco-based payments company said it commenced the strategy before the court released its highly-anticipated summary judgment decision on July 13, 2023.
“Ripple will continue to raise the bar on compliance, ethics, and transparency and invest the resources necessary to ensure compliance with the law as it continues to evolve in this space,” it added.
An Ideal Move to Counter Potential Injunction
Ripple’s commitment to ensure its XRP sales comply with legal standards is imperative given the recent developments in the ongoing SEC lawsuit. Recall that Magistrate Sarah Netburn granted the commission’s request to compel Ripple to submit its financial records.
This includes Ripple’s audited financial statements from 2022 to 2023 and contracts used to sell XRP to institutional investors.
The SEC specifically mentioned that the financial records it seeks would help the court decide whether to issue an injunction against Ripple. An injunction could prevent Ripple from selling XRP to sophisticated investors in the future unless it complies with certain legal requirements.
The possibility of Judge Analisa Torres issuing an injunction against Ripple recently stirred concerns within the XRP community. XRP enthusiasts feared an injunction order against Ripple could restrain ODL (On-Demand Liquidity) customers.
However, Attorney Bill Morgan dismissed this fear, stating that ODL clients can get XRP from other sources, including secondary markets.
Now, Ripple has indicated that it has restructured its XRP sales strategy and will also ensure that these sales comply with the standard set by the court.
Other Notable Updates From SEC V. Ripple Lawsuit
Meanwhile, Ripple also provided a rundown on the events in the lawsuit over the past months. Ripple mentioned the legal victories it had secured so far beginning from July 13, when the judge declared its programmatic sales and other distributions of XRP as non-security.
The company also noted how the court denied the SEC’s interlocutory appeal request, with the commission also dismissing all claims against its execs- Brad Garlinghouse (CEO) and Chris Larsen (Chairman)- with prejudice.
However, Ripple did not get a flawless victory, as the court held that the company violated the law via its historical institutional sales of XRP.
The lawsuit is in the remedies phase, where the court will determine the appropriate remedies to impose against Ripple following its violation of securities laws through its historical institutional sales.
Both the SEC and Ripple will file their respective remedies-related briefs from March through April 2024. After that, the court will decide the appropriate remedies to impose against the company.
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