Ripple's 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 civil securities lawsuit in Oakland moves forward.
As reported by U.Today, yesterday, the district court judge allowed the lawsuit to move forward, ruling that it would be up to a jury to decide whether XRP qualifies as a security for retail buyers on exchanges.
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 uncertain whether he was affected by the 2017 statement, reportedly lost a small amount of money on his trades. Ripple looks forward to cross-examination in this matter, Alderoty said.
This decision stands in contrast to an earlier ruling by Judge Analisa Torres, who found 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.
The 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.
Dan Burgin
Vladislav Sopov
