- WLFI launched the USD1 stablecoin on Ethereum and Binance’s BNB Chain, pegged to the US dollar.
- The USD1 launch followed rumors that the Trump family might acquire a stake in Binance, sparking speculation about a presidential pardon.
- The release of USD1 coincides with the US Congress evaluating the GENIUS Act.
The XRP lawsuit has reached a crucial point as Ripple made a move by withdrawing its cross-appeal. Despite the development, the future of Ripple’s institutional sales remains uncertain, with questions about compliance and the potential lifting of the SEC’s injunction. Experts have weighed in on the matter, raising concerns over the implications for Ripple’s approach to institutional sales and the crypto industry at large.
XRP Lawsuit Withdrawal from Cross-Appeal
Ripple’s decision to drop its cross-appeal in the ongoing XRP lawsuit has drawn attention to the next steps in the case. While this move could potentially open the door for Ripple to resume its institutional sales, the status of the SEC’s injunction remains unclear.
Ripple has yet to confirm whether it will resume sales to institutional investors. Still, experts suggest that even if the injunction is lifted, the platform will need to adjust its sales strategy. XRP lawyer Bill Morgan has discussed on X the potential changes Ripple might have to make to align with the court’s previous ruling.
Morgan pointed out that Ripple’s original method of selling XRP to institutional investors was deemed an investment contract, which led to the injunction. Consequently, Ripple may need to revise its approach to meet the legal requirements set by Judge Analisa Torres.
The Role of the SEC Injunction in Ripple’s Sales
Ripple CEO Brad Garlinghouse confirmed that the company had dropped its cross-appeal, but the issue of the SEC’s injunction remains unresolved. The SEC may now petition the court to lift the injunction, which would remove restrictions on Ripple’s institutional sales. If the injunction is lifted, Ripple can sell XRP directly to institutional buyers, such as hedge funds or private equity firms.
Security laws still require Ripple to follow their guidelines which creates procedural barriers. The lifting of the injunction enables Ripple to resume institutional sales but legal experts advise that the company must establish new methods to evade future legal hurdles.
