XRP Lawyer Explains Legality of Ripple’s Sales Outside the U.S.

Paigambar Mohan Raj
XRP Ledger Witnesses Unprecedented Spike in Account Deletions
Source: Binance Academy

John Deaton, a pro-XRP lawyer, has provided insight on how Ripple may sell XRP in the United States via ODL legally. Deaton’s comments addressed a query from a recent CryptoLaw AMA session. Following Judge Torres’ decision, a user questioned whether Ripple could sell the crypto directly outside of the United States. Deaton replied that Ripple had always been authorized to trade the cryptocurrency overseas without running afoul of the law. This is due to the U.S. SEC’s jurisdiction ending within the U.S. border.

As a result, the regulatory body lacked the legal authority to monitor crypto sales overseas. Deaton underlined that this is the reason why Ripple claimed in defense that 95% of sales were made outside of the U.S.

Also Read: Ripple: Attorney Claims Lawsuit Hindered XRP Adoption by 3 Years

However, problems occur when Ripple offers cryptocurrency for sale in the U.S. On July 13, Judge Analisa Torres ruled that Ripple’s prior XRP transactions with institutions qualified as unregistered securities.

In response to Deaton’s most recent statements, a user by the name of Digital Asset Investor provided a fictitious scenario that would allow Ripple to legally support the sale of XRP to institutes within the U.S. He proposed the idea that Ripple could sell the crypto to a foreign organization, like the Bank of England (BoE). The BoE might then sell the XRP for ODL to a U.S. organization like the Bank of America (BoA).

State Bank of Pakistan Commends Ripple and XRP

XRP Ripple
Source – Xcoins

In its 2022 financial stability report, the State Bank of Pakistan (SBP) gave a very dim outlook for the crypto sector. However, the bank had some praise for XRP. The SBP specifically acknowledged the cryptocurrency while recognizing its application in streamlining cross-border payments. Moreover, the leading banking organization recognized the project’s beneficial contribution to the international payment settlement system.

Also Read: SEC Moves To Appeal Ripple XRP Case Ruling

Despite the praise for the project, the bank did not have a lot of positive comments for the crypto industry in general. SBP emphasized the role cryptocurrencies play in terrorism financing and money laundering. It brought up the well-known instance of the Silk Road, a black web for illicit activity that was shut down. SBP also called attention to Terraform Labs’ failure and the collapse of the FTX cryptocurrency exchange. Both instances were some of the worst financial disasters of all time.