In July 2013, Judge Torres ruled that Ripple breached US securities laws for selling unregistered XRP to institutional investors.
The SEC filed its remedies-related opening brief in March 2024, claiming that Ripple continued to breach US securities laws after the December 2020 complaint. Significantly, the SEC called for an almost $2 billion penalty and an injunction to stop Ripple from selling XRP to institutional investors.
Ripple responded to the opening brief, stating that XRP sales were to accredited investors or through ODL contract-based sales. According to the remedies-related opposition brief, ODL contracts prevent XRP holders from making profits or suffering losses, and most ODL business is outside the United States.
The view on ODL contract-based sales and XRP sales to accredited investors may decide the size of the penalty and if an injunction is appropriate. If Judge Analisa Torres deems ODL contract-based sales a breach of US securities laws, Ripple could face a $2 billion penalty and an injunction.
The court ruling will likely influence buyer demand for XRP. Nevertheless, SEC plans to appeal against the Programmatic Sales of XRP ruling could impact XRP price trends more. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
SEC Appeal Plans, ETH-Spot ETFs, and US Politics
The SEC has not given any signals that it will accept the Programmatic Sales of XRP ruling. If the SEC ends its plans to appeal against the Programmatic Sales of XRP ruling, XRP may have a free run at $1.00. On July 13, 2023, XPR struck a session high of $0.9327 before hitting the reverse on SEC plans to file an appeal.