Many people think Ripple is banned from selling XRP to big buyers. That’s not true. Ripple can still make these sales, but the rules are now much stricter.
Crypto analyst Vincent van Code recently explained the situation in detail. Judge Analisa Torres has set clear limits. In the U.S., Ripple can only sell XRP to institutions if it either registers the sale with the SEC or uses a legal exemption. The SEC is the government agency that oversees securities.
Exemptions are like legal shortcuts. They allow Ripple to sell without full registration, but the company has to follow specific steps. Here are the main options:
- Reg D: For selling to wealthy, experienced U.S. investors who understand the risks.
- Reg S: For selling outside the U.S. to non-American buyers.
- Rule 144A: For selling to large institutional buyers who can then resell to other qualified buyers.
To use one of these exemptions, Ripple must set up the deal to match the exact rules. That means limiting who can buy, controlling where the sale happens, and adding restrictions on reselling the XRP so it doesn’t flood the market.
Read also: Here’s How High XRP Price Could Go If Governments Start Holding It
🧠🧠🧠 Ripple isn’t “banned” from selling XRP to institutions.
— Vincent Van Code (@vincent_vancode) August 8, 2025
Judge Torres’ injunction says: no unregistered institutional sales in the U.S. — unless Ripple either registers the sale with the SEC or uses a valid exemption.
Exemptions mean following a set process: choose the…
Ripple also needs to file the right paperwork with the SEC. For example, if it uses Reg D, it must submit Form D soon after the sale.
The bottom line, as Vincent van Code points out, is simple: Ripple’s institutional sales of XRP aren’t gone, they just have to be done by the book. If Ripple plays by these rules, it can still sell to big investors without a problem.
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