Ripple Labs, a prominent crypto payments firm, has revealed that it changed its approach to XRP sales before it bagged a win against the SEC in July 2023. In addition, it pledged to ensure compliance with legal standards for its XRP sales. The update comes as the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) enters its remedies phase.
Ripple Commits To Maintaining Regulatory Compliance For XRP Sales
In Ripple’s Q4 report, the company noted that it will adhere to the regulatory needs concerned with XRP sales as the Ripple vs SEC suit is now in the remedies phase. This commitment follows a significant legal victory on July 13, 2023, where the court ruled that XRP does not qualify as a security under federal law.
While celebrating this milestone, Ripple acknowledged the court’s findings regarding certain historical XRP sales to sophisticated entities, which were deemed investment contracts requiring SEC registration. However, the organization also revealed that they had changed the way of executing XRP sales way ahead of the July ruling. Looking ahead, Ripple is determined to align its sales practices with the legal standards articulated by the court.
The company further emphasized its dedication to elevating standards of compliance, ethics, and transparency in the crypto industry. In addition to these efforts, Ripple has been actively obtaining licenses to ensure regulatory clarity and foster sustainable innovation. Notably, it has secured a full Major Payments Institution license from the Monetary Authority of Singapore (MAS).
Moreover, it has completed registration as a virtual asset service provider by the Central Bank of Ireland. These achievements complement Ripple’s existing licenses, including the NY BitLicense and money transmitter licenses across nearly 40 U.S. jurisdictions.
Also Read: Ripple CLO Spots Loophole In SEC’s Stance On Crypto Regulation
Rewards For XRPL EVM Sidechain Validators
Ferran Prat Tió, CEO of Peersyst Technology, the development firm behind the XRPL EVM-compatible sidechain, recently revealed that validators on the sidechain will receive rewards in XRP. The announcement marks a significant departure from the traditional model of the XRPL, offering incentives to validators in the form of XRP rewards.
Tió explained that while the sidechain will operate independently, validators will be compensated in XRP for their contributions to the network. This approach aims to foster participation and support for the EVM sidechain, which will connect to the XRPL through a bridge. Additionally, the Peersyst CEO noted that unlike the XRP Ledger where transaction fees are burned, the sidechain will collect gas fees in XRP, redistributing them to validators.
Also Read: Former Ripple Director Hints at ‘Big’ XRP Announcement Amid Skepticism
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