The legal status of XRP, the digital asset associated with Ripple’s payment network, remains a point of contention. Following a recent court decision, Ripple CEO Brad Garlinghouse publicly challenged a report by CoinDesk, a prominent cryptocurrency news outlet.
California Ruling Dismissed Most Claims
Last week, a California District Judge issued a decision in a securities class action lawsuit against Ripple. The central question was whether XRP could be classified as a security under U.S. law. The court ultimately dismissed most claims against Ripple, but a separate claim related to a 2017 statement by Garlinghouse will proceed to trial.
Media Misinterpretations Cause Confusion
Unfortunately, some media reports misconstrued the ruling, suggesting it contradicted a previous decision by a New York judge who declared XRP not a security. This confusion highlights the ongoing challenge of establishing clear regulatory frameworks for digital assets.
Ripple CEO Refutes Misinformation
Garlinghouse took direct aim at a CoinDesk report that implied the California judge viewed XRP as a security. He emphasized that the judge made no such determination. He further stressed that XRP, alongside Bitcoin, enjoys the unique distinction of being classified as non-securities within the U.S., a fact CoinDesk later acknowledged by correcting a misleading headline and deleting a related tweet.
Industry Experts Support Ripple’s Position
Legal professionals aligned with XRP echoed Garlinghouse’s position. Attorney Bill Morgan criticized CoinDesk for spreading misinformation, arguing the California decision focused on a specific statement, not XRP’s inherent nature. He contrasted this with the New York ruling and even suggested XRP might have greater legal clarity than Bitcoin.
Also Read: Court Victories for Crypto: Recent Rulings Favor XRP, Sets Precedent for Secondary Sales
Community Rallies Behind Ripple
The XRP community stands behind Ripple’s stance. Comments by Ripple’s Chief Legal Officer, Stuart Alderoty, directly address the misinterpretations circulating online.
The Road Ahead for XRP
While the legal battle for coin continues, the current landscape suggests XRP and Bitcoin hold an advantage with established classifications as non-securities within the U.S. The upcoming jury trial may provide further clarity, but the ongoing debate underscores the need for clear regulatory guidance for the entire cryptocurrency industry.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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