Ripple has expressed optimism that banks and financial
institutions in the US will start using its cryptocurrency XRP following the
court ruling in the case between the blockchain company and the Securities and
Exchange Commission (SEC).
Last week, a judge in
New York ruled that Ripple did not violate federal securities laws by selling
XRP on public exchanges. However, the ruling, which concluded a long-standing legal
battle between Ripple and the SEC, stated that the blockchain firm contravened
the law by selling XRP to institutional clients.
Additionally, the sale
of XRP by Ripple’s CEO, Brad Garlinghouse, and the Co-Founder and former CEO,
Chris Larsen, on cryptocurrency exchanges did not amount to offering
unregistered securities. Similarly, the federal court added that Ripple’s compensation to employees did
not violate the securities federal laws.
Speaking in an interview
with CNBC, Ripple’s General Counsel, Stu Alderoty, said that the San
Francisco-based company expects to start discussions with financial
institutions planning to use its on-demand liquidity (ODL) service in
the third quarter. The service uses blockchain technology to enable users to
transfer funds using XRP.
After the SEC sued
Ripple and its executives in…
