00:00Judge Netburn has ruled in the favor of the SEC. What does this mean for Ripple and XRP?
00:06So we have another break in the case here. Sarah Netburn has ruled in favor of the SEC
00:12on the most recent motion of the SEC to compel Ripple to turn over their financial statements
00:19from 2022 and 2023 for their institutional sales of XRP. Obviously, you know, XRP itself
00:27is not a security that was ruled previously by Judge Torres back on July 13th last year. Ripple
00:36does have until February 12th to turn over these documents. So what does this actually mean? Is it
00:43trouble for Ripple? Are there going to be problems? Well, it could be. It could mean that the fines that
00:50they are subject to paying are increased depending on, you know, what's turned over in these documents.
00:57The amount of institutional sales that they've been making as unregistered securities. It's the
01:02contracts themselves that make something a security. So is somebody expecting returns on the asset that
01:10they're purchasing or they're getting from Ripple's efforts? And really, that's what's going to
01:15constitute these or securities or not. Obviously, you know, retail sales of XRP, not a problem,
01:20but it's institutional ones that are. Ripple, you know, retorted and they basically stated, you know,
01:27if you wanted this information, you should have asked for it in discovery. It's not really pertinent
01:31to, you know, what's going on here. Obviously, they want to be able to continue operating as they are.
01:37And that's the possible implication here, right? So now that they've been compelled to turn this
01:42information over, uh, depending on what the judge rules, they can set forth things that basically
01:49stipulate how Ripple can transact with institutions for the XRP. Um, have they already got it in the
01:56hands of everybody that needs it? We'll see, you know, uh, why is this happening now and not earlier
02:01in the case, you know, uh, you know, tenfold hat, whatever. But, um, we'll have to see how it shakes
02:08out. I think it's, it's actually bullish. I'm excited to see that there'll actually be a framework
02:14for how digital assets and the companies that use them are supposed to transact with institutions
02:21and make those sales. Uh, do they need to register with the SEC? There'll be actual legislation
02:25at a court ruling on how these transactions are supposed to take place. And I think that's actually,
02:31this is actually a benefit for that. Again, it might impact Ripple's ability to continue operating as
02:37they have been, they may have to restructure the contracts. They may have to halt sales of the XRP
02:41institutions moving forward. Um, you know, or go back to the drawing board and figure out the right
02:47way to do it. Uh, register with the SEC if they are going to, you know, deem these as securities. So,
02:52uh, excited. Um, you know, a lot of people were upset for whatever reason, thinking that this could
03:01potentially be a problem. I think it's actually just progressing the case forward. Um, and that
03:07we will get some actual regulation around how this stuff is supposed to be done and that it's
03:12actually good for the space as a whole. So hopefully this has been insightful for you.
03:16If you haven't, please like subscribe and we'll see you on the next one.
03:37Bye.
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