Bill Morgan says Ripple may halt institutional XRP sales after Judge Torres rejected the joint motion in the ongoing XRP lawsuit.
Since Judge Torres turned down the joint move in the XRP lawsuit, there are now questions about how Ripple handled the “historic institutional sales.”
Lawyer Bill Morgan hinted that Ripple might stop selling XRP to institutions, which was previously considered a security in the summary ruling.
XRP Sales Are Permanently Injunted In XRP Lawsuit?
The latest update in the XRP lawsuit is that Judge Analisa Torres turned down the joint motion that Ripple and the SEC sent.
With this action, the judge’s previous decision to punish the crypto firm with a permanent injunction and money stays in effect.
CLO Stuart Alderoty said that Ripple still has two choices: it could drop its appeal on “historic institutional sales” or go ahead with the challenge.
What he said,
With this, the ball is back in our court. The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal. Stay tuned. Either way, XRP’s legal status as not a security remains unchanged. In the meantime, it’s business as usual.
In the meantime, lawyer Bill Morgan’s most recent X post hinted that Ripple might stop the institutional sales.
He also said that the platform had already planned for a lifelong ban on the sales.
Ripple had obviously prepared for the likelihood of a permanent injunction on institutional XRP sales after the summary judgment decision in July 2023 and implemented a means of selling XRP to institutions. In the penalty phase it told the court it had restructured the way it undertook institutional sales to comply with Judge Torres’ reasoning and findings on institutional sales of XRP. This is in evidence.
Can Ripple Keep Selling XRP To Institutions?
After Judge Torres’ surprising decision to turn down the joint move in the XRP lawsuit, people are guessing when the token will be sold again.
A community member asked if Ripple could still make institutional sales after registering with the SEC.
Lawyer Marc Fagel said they could if they followed the rules for securities. He said, “I think they could sell through a registered securities offering.”
After this, the platform can’t sell the XRP token to institutions unless it files the motion for an indicative decision again.
CoinGape reported that lawyer Fred Rispoli thinks that both Ripple and the SEC will likely drop their cases and settle the case, which would mean that Judge Torres’ decision would stand.
Fagel added more information by saying,
Whether a particular sale constitutes a sale of securities depends on the facts and circumstances. Ripple’s historical sales of XRP to institutional investors were ruled to be unregistered securities offerings.
Bill Morgan agreed with Fagel that the injunction makes the XRP lawsuit uncertain because it forces the platform to ensure that XRP sales to institutions follow the Securities Act.
Based on what these experts have said, the company might have to stop sales to institutions if they don’t follow securities rules.