While the XRP lawsuit Summary Judgment paved the way for unraveling potential in the United States, there are many facets to the ruling that require further scrutiny.
Earlier in July 2023, Judge Analisa Torres ruled that the sale of Ripple’s XRP token does not constitute illegal securities sales, as was alleged by the U.S. Securities and Exchange Commission (SEC). Judge Torres ruled that the sale of the tokens to retail buyers does not amount to securities while the sale to institutional buyers remains security sales.
The attorney wondered if the ODL sales can be justified as securities, even if the institutional clients hold the XRP tokens for mere seconds. The Ripple ODL transactions involve customers holding XRP for a few seconds to facilitate quick cross-border payments. This means it is used just as a means for payments and does not necessarily involve the tokens as an investment.
Meanwhile, the XRP price has been on a steady decline in the last seven days, dropping from the highs it reached following the Summary Judgment.