Ripple Can Continue ODL Sales to Institutions

Clearing the air over the ODL sales that use XRP, attorney Jeremy Hogan said that this shouldn’t be a big issue “at all” moving ahead.

The U.S. Securities and Exchange Commission (SEC) slapped a $125 million fine on Ripple on Wednesday, August 7, in the ongoing SEC lawsuit over institutional sales of XRP and alleged violations of securities laws. However, the fine has sparked concerns over the use of on-demand liquidity (ODL) sales, which use XRP as a bridge for instant cross-border settlements.

Ripple Can Continue ODL Sales to Institutions

Attorney Jeremy Hogan clarified that the SEC fine should not significantly impact ODL sales. According to the attorney, most of Ripple’s ODL sales occur outside of U.S. jurisdiction and are therefore not subject to the SEC ruling.

Hogan stated that Ripple can continue to use these ODL sales but must exercise caution in doing so. The attorney highlighted five main exemptions that would be more easily applicable if the company were selling to businesses.

The attorney also noted that the judge did not include the On-Demand Liquidity (ODL) language that the SEC had requested. As a result, if the SEC believes that the blockchain startup violated the court order, it can file for another contempt and provide evidence of this violation. This would further allow the blockchain startup to argue that there can be no exemptions in profit if the use of XRP is very brief during the ODL transactions.

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