XRP, the controversial Ripple-affiliated token, is "on track" to be a security in California, according to attorney Fred Rispoli.
On Thursday, a civil securities lawsuit against the San Francisco-based company was given the green light to proceed.
U.S. District Court Judge Phyllis Hamilton, who is presiding over the case, has 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 since it marks yet another diversion from the ruling by Judge Analisa Torres. As reported by U.Today, Judge Torres determined that secondary XRP sales 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 sales of tokens. A recent Coinbase decision was also largely based on Rakoff's ruling.
There is some speculation that the SEC might refrain from appealing the case in order not to risk elevating the unpopular Torres ruling.
It is possible that XRP might end up being a security in California despite not being a security in New York.
Rispoli claims that the cryptocurrency industry needs to keep pressure on getting federal legislation due to such inconsistencies.
As reported by U.Today, Ripple CEO Brad Garlinghouse previously claimed that he would be willing to take the fight over the legal status of the XRP cryptocurrency all the way to the Supreme Court.
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Arman Shirinyan
Dan Burgin
Vladislav Sopov