The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is finally in its last stage, but confusion still lingers over the current legal status of XRP and Ripple’s institutional sales.
Crypto expert Vincent Van Code has provided clarity on the matter, breaking down the court decisions and Ripple’s remaining options moving forward.
XRP Is Not a Security, But Only on the Open Market
In a detailed post on X, Van Code reminded the community that Judge Analisa Torres ruled in July 2023 that XRP, when traded on exchanges or in programmatic sales, is not a security.
“XRP, as a digital token, is not in and of itself a ‘contract, transaction, or scheme’ that embodies the Howey requirements of an investment contract,” stated Judge Torres.
However, the court did label Ripple’s direct institutional sales of XRP as unregistered securities offerings, mainly because sophisticated investors bought it expecting profits tied to Ripple’s efforts.
Ripple Has Paid the $125M Fine, What’s Next?
According to Van Code, Ripple has already paid the $125 million penalty, which is currently held in escrow, waiting for final resolution.
Despite the injunction that restricts Ripple from making direct institutional sales, the company is still allowed to sell XRP on open markets without legal issues.
Can Ripple Still Sell to Institutions?
Yes, but with restrictions.
Van Code outlines two legal pathways Ripple can take to resume institutional XRP sales:
- Register the offering as a security under the U.S. Securities Act of 1933.
- Use exemptions like Rule 506(b) or Rule 506(c).
If these are used, Ripple must file a Form D with the SEC within 15 days of the sale.
These are standard practices for private placements and don’t imply wrongdoing, but they do come with strict compliance rules.
XRP Price Forecast: What Lies Ahead?
Despite legal hurdles, XRP’s price action remains bullish:
- Up 361.6% in the past year
- Up 3.5% in the last 7 days
- Up over 5.1% in the last 24 hours
Van Code believes institutional investors are still interested, seeing XRP as a long-term bet. He warns that short-term dips are often traps that push inexperienced traders out before a rally.
“Ripple is operating legally and selling XRP in compliant ways,” Van Code concludes. “Don’t let short-term price volatility shake your confidence.”
Final Thoughts
The Ripple-SEC lawsuit may be nearing its conclusion, but institutional restrictions still exist, at least for now. XRP continues to show strength in the market, with rising investor confidence and growing legal clarity. As Ripple explores compliant sales routes, the token could see broader adoption and stronger institutional inflows in the coming months.
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FAQs
XRP itself is not a security, nor are programmatic sales or those on exchanges. However, Ripple’s direct institutional sales of XRP were deemed unregistered securities offerings due to investor profit expectations.
These are SEC exemptions allowing private placements. Rule 506(b) permits sales to accredited investors with limited non-accredited investors. Rule 506(c) allows public solicitation but requires verification that all investors are accredited.
Analysts have diverse predictions for XRP’s price in 2025. Some conservative estimates range from $2.50-$6, while more bullish forecasts suggest it could reach $8-$15, or even potentially $20-$30, especially with the likely end of the SEC lawsuit and potential spot XRP ETF approvals.
