Ripple recently emerged victorious in court, but the ongoing debate surrounding XRP’s classification as a security remains unsettled. The possibility of an SEC appeal looms large, potentially shaping XRP’s future trajectory. In light of the CNF update, Fred Rispoli raised concerns about the inconsistent regulations governing XRP’s legal standing, noting discrepancies between California and New York.
While Judge Phyllis Hamilton dismissed various allegations against Ripple in the Zakinov lawsuit, including claims of violating securities laws, the fundamental question of XRP’s security status remains open. A trial is set to proceed regarding misleading statements made under California state law concerning the sale of securities. This centers around a statement by Ripple CEO Brad Garlinghouse in 2017, declaring his strong support for XRP and questioning the utility of other digital assets.
The recent court rulings have far-reaching implications, with U.S. courts dismissing claims of securities law breaches by Ripple, in contrast to a New York ruling that found the company in violation. Judge Analisa Torres ruled in July 2023 that Ripple had indeed violated U.S. securities laws by selling XRP to institutional investors, with the SEC and Ripple awaiting a decision on the ensuing penalty.
Judge Phyllis Hamilton’s reference to the SEC and the Programmatic Sales of XRP ruling in her court order suggests a potential grounds for appeal if Ripple fails to pass the Howey test’s third prong. In a separate ruling by Judge Torres, it was determined that programmatic sales of XRP did not meet the Howey test criteria.
The recent legal developments surrounding Ripple have left many uncertainties about XRP’s future outlook. The outcome of a potential SEC appeal could have a significant impact on XRP’s trajectory. As per CoinMarket Cap, XRP’s current price stands at $0.4773, with a 2.13% decrease in the past day and a 1.72% decrease in the past week. For more detailed information, visit CoinMarket Cap.
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