Ripple’s (XRP-USD) latest legal filing rejects the SEC’s allegations of its cryptocurrency, XRP, being suppressed through OTC token sales. On May 29, Ripple filed a new motion dismantling the SEC’s argument that Ripple has been suppressing XRP prices through over-the-counter (OTC) sales.
Ripple’s filing sets the record straight: they’ve ditched the OTC sales model. Now, all XRP sales go through their On-Demand Liquidity (ODL) product, which doesn’t offer any of the sweetheart deals seen in OTC contracts. “Ripple’s current sales of XRP to customers for use in connection with Ripple’s ODL product do not have any of the relevant terms of the over-the-counter contracts, such as discounts offered to sophisticated counterparties,” the filing states.
Smashing Price Suppression Claims
Ripple is calling out the SEC’s narrative that they’ve been dumping tokens to tank XRP’s price. Legal analyst Bill Morgan pointed out that Ripple’s evidence clearly shows no discounts being handed out to ODL customers, debunking the price suppression myth. Ripple also argued that ODL sales haven’t budged XRP’s price, which has been trailing Bitcoin and the broader crypto market anyway.
The Confidentiality Battle
In another twist, Ripple is fighting to keep some financial details under wraps. They’ve filed a Motion to Seal, aiming to protect sensitive documents tied to the SEC’s Motion for Judgment and Remedies. Ripple argues that exposing their audited financial statements and business details could hurt their operations. Ripple’s CFO, Jonathan Bilich, backs this up, emphasizing the need for confidentiality.
The SEC wants a hefty $2 billion fine, which Ripple is countering with a suggestion of $10 million and a ban on XRP sales to institutional investors. A heavy penalty could seriously dent XRP’s market demand.
If the court sides with the SEC, brace for an appeal against the Programmatic Sales of XRP ruling. Remember, back in October 2023, the SEC dropped charges against Ripple’s founder and CEO after an interim appeal got shot down. Now, the regulator has to wait until the case wraps up to challenge the XRP sales ruling again.
Is XRP a Buy?
According to TipRanks’ Summary of Technical Indicators, XRP is a Sell.
Don’t let crypto give you a run for your money. Track coin prices here.
