Ripple's General Counsel Clarifies XRP's Legal Status Amid California Court Case
Ripple's General Counsel Stuart Alderoty made statements about XRP's legal status in California during an ongoing civil securities lawsuit in Oakland.
The ongoing litigation has raised questions about whether XRP should be classified as a security for retail buyers on exchanges, and this issue will now be considered by a jury.
Alderoty stated that the judge in California rejected claims that Ripple violated federal securities laws and narrowed the case down to a state law claim from 2017 only.
Jury Will Decide XRP's Security Status in California
In a significant move, a district court in California announced that a jury will decide whether XRP should be considered a security for retail buyers on exchanges. This decision comes as a civil securities lawsuit filed against Ripple in Oakland progresses. The case is being closely followed by the crypto community due to its potential consequences for Ripple and the cryptocurrency market in general.
Dismissal of Federal Securities Violations
Ripple's General Counsel Stuart Alderoty emphasized that the California judge rejected all claims that Ripple violated federal securities laws. The remaining claim is based solely on a 2017 affidavit and will be prosecuted under state law. According to Alderoty, the plaintiff in this case did not purchase XRP directly from Ripple and could not verify whether he had heard of the 2017 statement before trading. According to the recorded reports, the plaintiff suffered a minor financial loss in his transactions.
