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- Ripple’s recent court victory leaves the debate over XRP’s status as a security unresolved.
- A potential SEC appeal could significantly impact XRP’s future.
Following the CNF update, Fred Rispoli highlighted concerns about regulatory inconsistencies regarding XRP’s legal status, suggesting it might be considered a security in California but not in New York.
Despite Judge Phyllis Hamilton dismissing several claims against Ripple in the Zakinov lawsuit, including securities law violation allegations, the debate over XRP’s status as a security remains unresolved.
However, a trial will proceed concerning misleading statements related to the offer or sale of securities under California state law. This claim centers on a 2017 statement by Ripple CEO Brad Garlinghouse, where he said:
I’m long XRP, I’m very, very long XRP as a percentage of my personal balance sheet… [I am] not long on some of the other [digital]assets, because it is not clear to me what’s the real utility, what problem are they solving… if you’re solving a real problem, if it’s a scaled problem, then I think you have a huge opportunity to continue to grow that. We have been really fortunate obviously, I remain very, very, very long XRP, there is an expression in the industry HODL, instead of hold, it’s HODL… I’m on the HODL side.
Court Rulings and Their Implications
U.S. courts dismissed allegations that Ripple breached U.S. securities laws, which contrasts with a New York ruling finding Ripple in violation. In July 2023, Judge Analisa Torres ruled that Ripple violated U.S. securities laws by selling XRP to institutional investors. Ripple and the SEC await a court decision on the penalty Ripple must pay.
The SEC’s Potential Appeal and Market Impact
Regarding the SEC and the Programmatic Sales of XRP ruling, Judge Phyllis Hamilton referenced this in her court order. If Ripple loses the case concerning the Howey test’s third prong, the SEC might find grounds to appeal the Programmatic Sales ruling. In July 2023, Judge Torres also ruled that programmatic sales of XRP do not satisfy the Howey test.
Ripple’s latest court victory leaves many questions about XRP’s future. A successful SEC appeal could significantly affect XRP’s outlook. According to CoinMarket Cap, XRP’s price is $0.4773, with a 2.13% decrease in the past day and a 1.72% decrease in the past week. For further insights, visit CoinMarket Cap.
