Ripple Wins Major Victory in XRP Classification Case.

Beyond the high-profile clash with the SEC, Ripple is facing another legal challenge in California. In this case, CEO Brad Garlinghouse is defending against a securities claim related to statements he made in 2017.

The controversial statements are as follows: “I am long-term invested in XRP, the majority of my personal balance sheet is XRP. . . . . . I'm not long-term for [other digital assets], because I can't clearly see what their real benefits are, what problem they solve. . . If it's solving a real problem and it's a widespread problem, I think you have a great opportunity to continue to grow. We were really lucky and to be frank, I am investing in XRP for the long term, there is a HODL expression in the industry, “HODL” instead of “hold”. . . I am on the side of HODL.”

In the latest development, the judge dismissed some allegations of federal securities law violations. Ripple's general counsel commented: California judge dismissed all claims that Ripple violated federal securities law. The New York decision did not change the decision that XRP is not a security.

A state civil claim is based on a 2017 disclosure and will go to trial. The plaintiff – who did not buy directly from Ripple and does not even know if he heard this statement before trading – allegedly lost several hundred dollars. We look forward to this cross-examination.

Ripple's ongoing legal battle represents the changing dynamics of cryptocurrency regulations. The consequences of these lawsuits will not only affect Ripple, but will also have far-reaching implications for the entire crypto industry. Users and investors should stay informed as these legal processes can inform future market conditions and regulatory approaches.
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