According to ChainCatcher, Ripple recently made a profit in a class-action securities lawsuit. Although Judge Hamilton dismissed most of the lawsuit, he hinted that XRP might be a security and therefore requires stricter regulation. This runs counter to Judge Torres' ruling last year: the latter believed that XRP was not basically a security.

This reflects a larger problem: the lack of legal and regulatory clarity in the U.S. crypto industry, and unless Congress or a higher court ruling gives the industry clarity, projects like Ripple may face more regulatory confusion.

Ripple executives said Hamilton’s ruling does not overturn Torres’ 2023 ruling that XRP is not a security under federal law.

Moish Peltz, a partner at New York law firm Falcon, Rappaport & Berkman, added: “… the question of whether XRP is a security is unresolved.”