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ODL XRP sales
Ripple’s CTO David Schwartz commented on Twitter on the 14th about the sale of the crypto asset (virtual currency) XRP related to the company’s international remittance solution “On-Demand Liquidity (ODL)”.
In response to the U.S. District Court ruling on the 13th that “XRP itself is not a security,” Leonidas Hadjiloizou, a well-known XRP supporter, said on the same day, “The sale of XRP in ODL is a security as an investment contract. Does it fall under the offer?” Posted a question. “We don’t have a clear answer yet,” Schwartz said.
We’re still figuring this out. We don’t currently have ODL-related sales with a US nexus and not being able to do so is not really a huge deal. We can still do ODL in the US so long as XRP is never Sourced from Ripple.
— David “JoelKatz” Schwartz (@JoelKatz) July 14, 2023
connection: “The virtual currency XRP itself is not a security” US district court rules
ODL uses XRP as a bridge currency when transferring different currencies. It is a mechanism to execute remittance by exchanging one currency for XRP and exchanging that XRP for another currency.
Source: Ripple
Hadjiloizou quoted Ripple’s quarterly report in the above tweet. There you will find the quarterly XRP sales volume for ODL. He then posted, “Does an ODL-related XRP sale count as a security sale now?”
Mr. Schwartz replied that there was no clear answer to this, and stated as follows.
Currently, we are not selling ODL’s XRP to US-related companies, and the inability to do so is not a big problem.
ODL is still available in the US today, as long as the XRP was not sourced from Ripple.
connection: Ripple trial ruling XRP and other altos soared, bitcoin updated high since the beginning of the year
Lawyer’s opinion
It has long been of interest whether the sale of XRP on ODL constitutes an offering of securities. In its dated 13th filing, the US district court also noted that Ripple provided ODL and sold XRP to ODL customers.
According to Schwartz, there is no clear answer on this point, but cryptocurrency lawyer Bill Morgan made the following observations in June this year:
In my opinion, the sale of XRP to ODL’s customers does not constitute an investment contract.
The reason for this is that ODL customers only hold XRP for a very short period of time, with no intention of investing, and no expectation of profit.
My theory is Ripple XRP sales to ODL customers cannot be investment contracts because there is no investment or investment intent by ODL customers and no expectation of profits by ODL customers who hold XRP for a very short time and use it akin to consumption/3
— bill morgan (@Belisarius2020) June 29, 2023
The U.S. District Court ruled that Ripple used the funds from the sale of XRP to develop the XRP ecosystem and expected the price of XRP to rise. I decided.
connection: Summary of the “Ripple trial” filed by the US SEC (December 2020-July 23)
The post Ripple’s CTO comments on ODL’s XRP sales as securities appeared first on Our Bitcoin News.
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