Ripple Labs Inc., XRP II LLC, and CEO Brad Garlinghouse have achieved a favorable outcome in their ongoing legal battle. A U.S. court has approved a motion for final judgment while halting class claims brought against the defendants. This decision, issued by Judge Phyllis Hamilton, represents a significant procedural step in the dispute over XRP’s regulatory classification.
The SEC alleges that Ripple unlawfully generated $1.3 billion through XRP sales, claiming the transactions constituted investment contracts under federal securities laws. As per the SEC, the buyers of XRP relied on Ripple’s work and business attempts to earn profits, thereby XRP being a security. Ripple still denies such propositions, promising that XRP does not fit the legal definition of security.
Also Read: Ripple Lawsuit with SEC Nears Possible Conclusion as Leadership Shifts Loom
Final Judgment Advances, State Claims on Hold
In its latest order, the court agreed to Ripple’s request to move forward with a final judgment on class action claims. At the same time, it also suspended state-level hold-outs of counterclaims by the plaintiffs till matters were settled. This was a course that Ripple had taken earlier in the case to have it guided and managed the remaining claims separately.
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Additionally, the court has encouraged both parties to pursue alternative dispute resolution methods for unresolved individual claims. However, as highlighted in this paper, anything regarding the class claims may affect the timeline depending on the court’s new dates upon disposal of the appeals.
Legal analytics professionals and Ripple executives keep their fingers crossed concerning the lawsuit. Attorney Fred Rispoli stressed that the complete withdrawal of the SEC case is not very probable, but the settlement is entirely feasible.
Conclusion
This ruling allows Ripple to progress toward resolving critical aspects of the case while delaying other claims for future consideration. The trial next year will play a pivotal role in determining the broader implications for XRP and the regulatory landscape for digital assets.
Also Read: Ripple CTO Defends Platform’s Growth and Vision Amid Criticism
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.