Ripple Senior Director of Product Marketing – Payments posted an update on LinkedIn, saying,
“Building: 90% of our business is outside the United States. After being relatively quiet for the past 3 years in the US for Ripple Payments, we’re geared up to announce new product updates powered by our money transmitter licenses (MTLs) that cover the majority of US states.”
Ripple currently has most of its business outside of the US. In December 2020, the SEC filed charges against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen for failure to register XRP as a security. The SEC v Ripple case compelled Ripple to limit its operations in the US. However, the Programmatic Sales of XRP ruling has fueled demand for Ripple products.
In July, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
The latest update suggests that the US market is revisiting Ripple payment solutions despite the lingering threat of an SEC appeal. Investors expect the SEC to appeal the Programmatic Sales ruling. In October, Judge Torres rejected the SEC Motion to file interlocutory appeal. The SEC must wait until the end of the ongoing SEC v Ripple case to file an appeal against the Programmatic Sales ruling.
In July, Judge Torres ruled Ripple breached Section 5 of the Securities Act for XRP sales to institutional investors. The SEC and Ripple are progressing through remedies-related discovery that must conclude by February 12.