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Ripple CEO Hails Latest Court Ruling as a Major Victory

Ripple CEO Brad Garlinghouse has praised a recent court ruling, calling it a significant triumph for his company. The court decision dismissed a lawsuit that Garlinghouse described as a baseless attempt to undermine Ripple’s credibility and operations, further solidifying Ripple’s position in ongoing legal battles within the cryptocurrency industry.

The lawsuit accused Ripple of violating securities laws by selling unregistered securities in the form of its XRP tokens. However, the latest court ruling sided with Ripple, reinforcing the company’s stance that XRP is not a security. Garlinghouse expressed relief and satisfaction with the outcome, emphasizing that the ruling is a major win not only for Ripple but also for the entire cryptocurrency sector, as it helps clarify the legal standing of digital assets.


A representations of cryptocurrency Ripple is seen in front of a stock graph and U.S. dollar in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration

Clarifying the Legal Landscape

Taking to social media platform X, Garlinghouse addressed the ruling by U.S. District Judge Phyllis J. Hamilton of the Northern District of California. The judge granted Ripple summary judgment on federal and state class claims but denied it on an individual claim under California law. This mixed ruling has caused some confusion regarding its implications for XRP.

Garlinghouse clarified, “To be absolutely clear, this is a big win. Nothing in the decision changes the fact that XRP is not a security, as affirmed by the New York court decision.” He emphasized that the ruling dismissed all class action claims alleging Ripple violated federal securities laws by selling XRP.

Addressing Misleading Claims

Garlinghouse also addressed misleading headlines about the decision, explaining that the lawsuit was a clear example of an attempt to exploit the U.S. legal system and distort statements for financial gain. He criticized the lawsuit for its lack of merit, highlighting that the sole plaintiff in the remaining claim did not buy XRP directly from Ripple and could not confirm if he had even heard Garlinghouse’s statements before trading. The plaintiff alleged that Garlinghouse made misleading statements about his XRP position during a December 2017 interview.

Garlinghouse stood by his statements from the interview, where he said, “I’m very, very long XRP as a percentage of my personal balance sheet.” The plaintiff claimed this was false, alleging that Garlinghouse sold millions of XRP throughout 2017. Garlinghouse described the lawsuit as a troll attempt to distort his statements and seek hundreds of millions in class action settlements.

Future Implications for Ripple and the Cryptocurrency Industry

Ripple’s Chief Legal Officer, Stuart Alderoty, echoed Garlinghouse’s sentiments, noting that the ruling from the Southern District of New York, which declared XRP not a security, remains unaffected. This court victory is seen as a pivotal moment for Ripple, bolstering its stance in ongoing legal battles and reinforcing the legal standing of XRP.

Garlinghouse is optimistic that this decision will contribute to a clearer and fairer regulatory environment for cryptocurrencies, encouraging innovation and growth in the industry. Ripple continues its mission to revolutionize the financial landscape through blockchain technology and digital payments, confident in its strengthened legal position.

This latest court ruling is expected to pave the way for a more transparent and secure future for digital finance, fostering collaboration with regulators and stakeholders to ensure the sustainable development of the cryptocurrency sector.

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