On June 20th, Ripple scored a victory in its ongoing legal battle. A judge dismissed claims that XRP was sold as an unregistered security.
What the Ruling Means
The judge ruled in favor of Ripple on both federal and state claims. This means that XRP is not considered a security under current laws.
However, the judge did not make a final decision on whether XRP is a security. That question will be decided by a jury.
Ripple’s Victory and Uncertainties
While Ripple won a procedural victory, the uncertainty over XRP’s classification remains. A jury will still decide if XRP meets the legal definition of a security.
Legal Experts Weigh In
Some legal experts believe the ruling contradicts previous decisions on digital assets. Others see it as a step towards clarifying the regulatory landscape for cryptocurrencies.
Class Action Claims Dismissed
The judge dismissed all class action claims against Ripple. This means that individuals who claim to have lost money on XRP cannot sue as a group.
Individual Claim Proceeds
One individual claim against Ripple’s CEO, Bradley Garlinghouse, will proceed to trial. This claim alleges that Garlinghouse made misleading statements about XRP.
The Need for Federal Legislation
Some experts argue that federal legislation is needed to address the regulatory treatment of cryptocurrencies. This would provide more clarity and certainty for both investors and companies.
