Ripple Chief Legal Officer Stuart Alderoty has clarified the legal status of XRP in California, addressing recent concerns following a court ruling. The token, owned by San Francisco-based Ripple, has been under scrutiny as a securities civil lawsuit moves forward in Oakland.
Ripple Chief Legal Officer Stuart Alderoty has clarified the legal status of XRP in California, addressing recent concerns following a court ruling. The token, owned by San Francisco-based Ripple, has been under scrutiny as a securities civil lawsuit moves forward in Oakland.
As Guru-Investingreported, yesterday, the district court judge allowed the lawsuit to move forward and ruled that it would be up to a jury to decide whether XRP qualifies as a security for retail buyers on exchanges.
Alex Dovbnya
However, Alderoty emphasized that the California judge dismissed all allegations, suggesting that Ripple violated federal securities laws. The only remaining claim in California, based on a 2017 declaration, involves state law and is scheduled for trial.
The plaintiff in that case, who did not purchase XRP directly from Ripple and is unsure if he was affected by the 2017 filing, allegedly lost a small amount of money on his trades. Ripple looks forward to cross-examination on this matter, Alderoty said.
This decision contrasts with an earlier ruling by Judge Analisa Torres, who determined that secondary sales of XRP were not securities, a decision that initially appeared to favor Ripple. Thus, the popular cryptocurrency is not classified as a security in New York, a position that remains unchanged.
Gamza KhanzadaevThe latest development follows a pattern of inconsistent rulings from state to state, highlighting the need for federal legislation to provide a consistent regulatory framework for cryptocurrencies.
