XRP, the controversial Ripple-affiliated token, is “on time” be a value in California, according to attorney Fred Rispoli.
XRP, the controversial Ripple-affiliated token, is “on time” be a value in California, according to attorney Fred Rispoli.
A civil securities lawsuit against the San Francisco-based company was given the green light Thursday.
US District Court Judge Phyllis Hamilton, who is presiding over the case, ruled that it would be up to the jury to decide whether the token is a security in the context of retail buyers on an exchange.
Alex DovbnyaThis is a major setback for Ripple as it marks another departure from Judge Analisa Torres’ ruling. As Guru-Investingreported, Judge Torres determined that secondary sales of XRP were not securities in a blow to the SEC.
However, the aforementioned ruling failed to gain traction. District Judge Jed Rakoff did not differentiate between programmatic and institutional token sales. A recent Coinbase decision also relied heavily on the Rakoff ruling.
Alex DovbnyaThere is speculation that the SEC could refrain from appealing the case so as not to risk elevating Torres’ unpopular ruling.
It’s possible that XRP could end up being a security in California despite not being a security in New York.
Rispoli claims that the cryptocurrency industry needs to continue pushing for federal legislation due to such inconsistencies.
As Guru-Investingreported, Ripple CEO Brad Garlinghouse previously stated that he would be willing to take the fight over the legal status of the XRP cryptocurrency all the way to the Supreme Court.
