Monica Lengthy, the president of Ripple, not too long ago revealed that the corporate itself doesn’t have any On-Demand Liquidity (ODL) companions.
This disclosure got here in Ripple’s newest submitting, which sought to oppose the SEC’s movement for cures and entry for closing judgment. The Ripple president was one of many executives who testified to assist the corporate’s opposition to the SEC’s request for roughly $2 billion in fines.
Lengthy’s testimony held vital weight as a result of her eleven-year involvement with Ripple and her present oversight of the corporate’s Compliance and Danger Administration Committee.
Particularly, Lengthy’s present position as president grants her familiarity with Ripple’s XRP distributions. It contains current and previous gross sales contracts regarding XRP and the context surrounding these transactions.
Accordingly, the Ripple president testified to a number of developments associated to the continuing litigation, together with Ripple’s XRP distribution by way of ODL companions.
Ripple’s XRP distribution by way of Singapore Subsidiary
Lengthy uncovered that when the SEC filed its lawsuit towards Ripple, the corporate’s Singapore subsidiary had already obtained authorization to promote XRP to ODL clients. It operated below a licensing waiver in accordance with Singapore laws.
Following the SEC’s lawsuit, Ripple’s Singapore subsidiary grew to become the first entity liable for coming into into XRP gross sales contracts with new ODL clients. Lengthy highlighted that these contracts had been executed in compliance with Ripple’s licensing exemption till October 2023.
By this time, Ripple’s Singapore subsidiary had obtained a Main Cost Establishment license from the Financial Authority of Singapore. This authorization enabled it to conduct Digital Cost Token Companies. Consequently, this license governs the gross sales of XRP to ODL clients.
Ripple Itself Has no ODL Companions
Moreover, the Ripple govt pressured that the contracts facilitating XRP gross sales from Ripple’s Singapore subsidiary to ODL clients explicitly specify that they’re topic to Singaporean regulation.
Furthermore, she identified that these contracts embrace a non-assignment clause. This means that the rights and obligations outlined throughout the agreements can’t be transferred to a different get together.
Therefore, following an intensive investigation, Monica Lengthy testified that each one ODL clients of any Ripple subsidiary using XRP within the ODL product are exterior the US, besides three licensed exceptions. Furthermore, these ODL clients are thought-about subtle counterparties.
Accordingly, Lengthy pressured that Ripple itself as a U.S.-based entity doesn’t have any ODL clients, however its subsidiary handles these gross sales.
Ripple President Monica Lengthy Testimony
Moreover, she highlighted that neither Ripple nor any of its subsidiaries engaged within the sale of XRP from the SEC’s submitting of December 2020 till the U.S. courtroom’s resolution in July 2023.