According to Stuart Alderoty, General Counsel of Ripple, the US Securities and Exchange Commission has recognized the use of XRP as a fuel for cross-border payments.
The SEC’s recognition of the usefulness of XRP in Ripple’s cross-border payment product On-Demand Liquidity (ODL) can be found in the government agency’s recent lawsuit against the San Francisco-based company.
The relevant section of the complaint reads:
“ODL involves a transaction where a money transmitter in a sender’s jurisdiction converts fiat currency to XRP, transfers XRP to a recipient’s jurisdiction, and converts XRP to that locale’s fiat currency. Instead of holding XRP directly, leave Fund transmitters that may be using ODL typically refer to market makers in the sender and recipient jurisdictions to get on and off XRP in ninety seconds or less. “
In a recent tweet, Alderoty describes the segment as an “important point to keep in mind” as Ripple prepares its case. According to Alderoty, the SEC’s passage to XRP as the fuel for online payments positions the asset as a unique and innovative technology.
“That is innovation. Point. It’s also the epitome of convertible virtual currency. “
The SEC claims XRP was an unregistered security when it was launched and remains a security to this day.
According to Alderoty, Ripple’s legal team will be filing an official response shortly.
“For anyone asking about updates to the SEC lawsuit, it’s no wonder the legal process takes time! We may be calm, but we are not inactive. Our entire legal team will announce themselves shortly and we will be filing our first response to the SEC’s unsubstantiated allegations within weeks. “
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