According to U.Today, Ripple's Chief Legal Officer, Stuart Alderoty, has provided clarification on the legal status of XRP in California. This comes in response to recent concerns following a court ruling. The token, which is owned by San Francisco-based Ripple, has been under scrutiny as a civil securities lawsuit in Oakland progresses. The district court judge has allowed the lawsuit to proceed, ruling that a jury should decide whether XRP qualifies as a security for retail buyers on exchanges.
However, Alderoty stressed that the California judge dismissed all allegations that Ripple violated federal securities laws. The only remaining claim in California, based on a 2017 declaration, pertains to state law and is set for trial. The plaintiff in this case, who did not purchase XRP directly from Ripple and is unsure if he was affected by the 2017 statement, reportedly lost a small sum of money on his trades. Alderoty expressed Ripple's anticipation for the cross-examination in this matter.
This ruling contrasts with an earlier decision by Judge Analisa Torres, who determined that secondary sales of XRP were not securities. This decision initially seemed to favor Ripple. As a result, the popular cryptocurrency is not classified as a security in New York, a status that remains unchanged.
The recent developments underscore a pattern of inconsistent rulings from state to state, emphasizing the need for federal legislation to establish a consistent regulatory framework for cryptocurrencies.
