At present, fintech firm Ripple is already subject to several lawsuits that allege it broke SEC rules by selling unregistered securities with sales of the XRP crypto token.
But in a further blow, attorneys for a company called Bitcoin Manipulation Abatement LLC filed a fresh lawsuit with the US Federal District Court on May, 1st 2020.
Consequently, according to court documents, Bitcoin Manipulation Abatement LLC accuses Ripple and its CEO, Brad Garlinghouse of offering and selling unregistered securities.
Source: courtlistener.com
Lack of Regularity Clarity Represents Stickpoint For Ripple
The US lacks a uniform legal framework with regard to digital assets. This lack of decisiveness is working to drive tech innovation away from US shores.
With that, authorities are well aware that the outcome of Ripple’s on-going lawsuits could worsen this situation further. The knock-on effects potentially being the US losing ground to crypto-friendly nations.
Caitlin Long, an ex-Managing Director at Morgan Stanley commented on the flight overseas as a direct result of the SEC’s indecision.
“The SEC’s stance has caused a massive flight of startups to offshore jurisdictions… Lawyers right and left were telling clients, ‘Don’t issue tokens to U.S. investors and don’t domicile in the U.S.'”
But is it already too late? Facebook’s Libra Foundation raised many eyebrows last year when it announced it was setting up base in Geneva, Switzerland.
However, David Marcus, Head of Libra was quick to point out that this wasn’t to evade US regulators. Instead, Marcus stated that a number of influential organizations are already headquartered in Switzerland. Making the move a better fit for the company focused on crypto.
“We chose Switzerland not to evade any responsibilities or oversight, but rather because it’s a well-established financial place where the World Trade Organization, Bank for Internal Settlements and other financial institutions are located.”
All the same, it’s hard to argue that the US hasn’t already lost ground. Switzerland announced in February 2018 that some ICOs are not securities. This effectively declared Switzerland as a top contender for conducting crypto business.
More than two years later, the SEC continues to procrastinate on a securities framework in respect of crypto. As a result, Ripple must feel hard done by.
New Bill Does Not Consider Digital Asset as Securities
Based on current circumstances, it seems as though the SEC is waiting on the court system to rule on whether the XRP crypto token is a security, or not.
It could be argued that such a decision falls within the remit of the SEC, not the US court system.
However, news of a bill amendment update to Californian securities law may mean Ripple gets a reprieve from the on-going lawsuits.
The state of California, home to Silicon Valley, is moving to clarify what is meant by a security. The bill amendment excludes digital assets from the definition of a security.
“Investment contract, except any digital asset that meets one of the following criteria is presumptively not an investment contract.”
If passed, this bill amendment would effectively nullify accusations that Ripple acted against securities regulation by selling XRP.
Featured image from Unsplash origin »
Ripple may be delaying settlement to secure better terms for a future IPO or securities offering.
The SEC’s withdrawal from other crypto lawsuits raises questions about the prolonged XRP caseThe post SEC drops major crypto lawsuits - So why is Ripple still in court? appeared first on AMBCrypto.
As per a longstanding agreement, Stellar’s founder and Ripple’s former co-founder is set to receive another 63M XRP. In 2011, Jed McCaleb founded Ripple. Embroiled in multiple lawsuits, McCaleb has been restricted from selling his entire stash of over 4.
It looks as if there’s more trouble brewing on the horizon for Ripple Labs. In fact, after a district California Court ruling, we may see a large ‘uptick’ in class actions across the whole cryptocurrency space.
Ripple’s XRP tokens are certainly not a great investment. At least that’s the take that most holders have right now. XRP is on a huge downtrend since its all-time high and is seeing its value drop.
By CCN Markets: To say that Ripple (XRP/USD) is a laggard would be a huge understatement. The cryptocurrency has been in a long downtrend ever since it posted an all-time high of $3. 30 in January 2018.
Last year, a lot of people had doubts about the future of Ripple’s XRP. The company had seen some tough times as it had to face lawsuits and some people from the crypto community were sure that its tokens would be deemed as securities, which would have been a heavy blow. However, now the second […]
Ripple, which is based in San Francisco is one of the biggest blockchain and cryptocurrency companies in the world. It is the majority holder of XRP, a top 3 cryptocurrency by market cap and wants to get a share of the $2 trillion cross-border payments business.
Despite all the trouble that the bear market has brought to the crypto industry and all the lawsuits that Ripple is facing, 2018 was not a very bad year for Ripple’s cryptocurrency, XRP. Recently, a fan account named XRP Research Center has used Twitter to launch an “update” of how the ecosystem of Ripple evolved […]
In recent regulatory news, an executive board member of the European Central Bank (ECB) has given a dismissive appraisal of bitcoin and rejected the prospect of central banks issuing state-backed digital currencies in the foreseeable future.
Ripple’s legal team in their ongoing securities suit is attempting a new tack: to have the claim proceed at the federal level. In a move that legal commentator Jake Chervinsky described as “seriously crafty,” Ripple has filed a formal notice-of-removal motion to have their most recent securities suit, Zakinov et al v.
Despite finding itself mired in lawsuits, controversies, and price drops, Ripple’s XRP has so far managed to pull through quite a difficult year without any major permanent setbacks. It has taken all the brunts thrown its way rather effectively, and if things continue along the current trajectory, the company could end up becoming the Microsoft […]
What’s the Deal With Ripple Being Touted as the Microsoft of Crypto? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
A year-old legal battle between two of the crypto industry’s leading organizations is coming to a close. After a volley of countersuits that had the companies jumping from courthouse to courthouse, Ripple and R3 have brokered a settlement that will put the drama to rest.
At its concourse of dismissed class-action lawsuits grows, cryptocurrency magnate Ripple will move forward without its general counsel, Brynly Llyr. Ripple Labs came under fire earlier this year while acting as the leading global blockchain solution for enterprise transactions.
Ripple Labs has managed to coordinate all lawsuits claiming "XRP is a Security" for a single response as they are all a material part of the same subject matter.
The post Ripple Breathes Some Air of Relief Against Investors’ Claims of XRP is a Security appeared first on CoinSpeaker.
Ripple and XRP continue to grapple with proving it’s degree of decentralization in the court of public opinion as well as against class-action lawsuits. Regulators have been mum regarding the issue, which may be why Ripple wanted former president Bill Clinton to speak at the next Swell conference.
Exodus Wallet Introduces Support for Ripple (XRP) Users, Also Begins Auto-Updates Ripple, while gaining a reputation for a number of reasons, like having a strong transaction speed, application by credit companies like American Express, and a number of lawsuits, hasn't really been as widely accepted as its bigger cousins Bitcoin and Ethereum. For Exodus, at […]
Despite findings that Ripple is actually decentralizing in the process controlling a mere 48 percent of nodes at their UNL, XRP prices are dismissive to say the least. A few days after breaking below 40 cents, prices are 10 cents away from our main support line and bear targets at 15 cents. That’s a 60 […]
Ripple Labs, the team behind Ripple and of course, XRP have made way in their legal battle after reports suggest they have won one of the court cases that is currently forcing Ripple and XRP into a temporary hibernation.
Ripple Labs get relief in one of the latest lawsuits from the District Court of California, while the company doubles-down on its expansion plans in Asia and the Middle East.
The post Ripple’s Expansion Plans Overshadowing Its Lawsuit Worries appeared first on CoinSpeaker.
The difference in the amount of litigation facing the crypto and tech communities was brought to light by Twitter user @lanbins, who responded to a post about three pending lawsuits against Ripple, by stating: “Nice to know but apple is I like 60 .
On the 10th of August 2018, the US District Court of the Northern District of California, issued an ‘Order Denying Motion to Remand’ towards the court case of Ryan Coffey against Ripple Labs and Brad Garlinghouse.
To being this piece, the XRP community needs to be commended once again for bringing the above fact to light. Twitter user @Ianbins brought it to the attention of Ethereum World News when he stated the following in reply to another tweet.
Ripple’s legal proceedings have been relatively quiet of late, we can only expect that this is as a result of Ripple’s legal representatives paying heavy attention to PR and to damage control surrounding the XRP security saga.
Its August 2018. Ripple have certified that their currency, XRP is a cryptocurrency not bound to them by rebranding XRP, as XRP. Ripple are riddled with lawsuits and Coinbase still won’t list XRP.
Back in January, and before the Ripple company started getting served with lawsuits, XRP (XRP) was the coin to have. Talk in the crypto-verse was that the digital asset was headed towards first dethroning Ethereum (ETH) from the number 2 spot according to coinmarketcap.
Legal trouble is brewing at Ripple. The issuer of the XRP asset is facing many lawsuits over securities fraud and its alleged issuing of security tokens without an official license. To counter these issues, the firm recently hired two new people who will help defend the company. Ripple Is Prepared to Fight Many experts are […]
The developer of XRP, the third largest cryptocurrency in the world, Ripple Labs Inc. , has been hit with another lawsuit for securities fraud. This is the third lawsuit in three months. The current lawsuit alleges that the company violated US securities laws and manipulated prices.
Ripple is staring down the barrel of yet another securities lawsuit — its third one this year. Filed in the Superior Court of the State of California in San Mateo County, the class action alleges that Ripple and its team illegally sold and promoted XRP, Ripple’s currency, as an unregistered security.
On June 14, 2018, the Securities and Exchange Commission (SEC) director of corporate finance made waves in the cryptocurrency space when he commented at Yahoo Finance’s All Market Summit: Crypto that ether is not a security.
Ripple has a problem. Their token has lost five-sixths of its value since December. That’s not the problem. Ripple is facing a couple of class action lawsuits. That’s not the problem either.
The XRP price is getting ready to surge to new highs as bulls attempt to hold a critical resistance level. Recently, the cryptocurrency experienced a major breakdown as market downside pressure increased.
The XRP price has retraced and lost the gains it recorded from its Sunday rally following Trump’s announcement that the crypto would be included in the crypto strategic reserve. Following this price correction, crypto analyst Trade City has key support levels that could determine XRP’s future trajectory.
The cryptocurrency market experienced a significant rally over the weekend, sparked by President Donald Trump’s announcement regarding the inclusion of three additional digital assets—Solana (SOL), XRP, and Cardano (ADA)—in a future national “Crypto Strategic Reserve.
In what could be a major move for digital assets in the United States, President Donald Trump officially announced on Sunday the establishment of a “Crypto Strategic Reserve.” The ‘Crypto Capital Of The World’ This initiative, outlined in his recent executive order on digital assets, aims to include cryptocurrencies such as XRP, Solana (SOL), and […]
The XRP price has remained afloat in 2025 despite the uncertain market condition where several large-cap assets have floundered. However, the altcoin did little to absorb the bearish pressure that hit the market over the past week.
XRP’s price action within the past seven days has been limited to a trading range as investors look to recover the losses they incurred at the beginning of February. This range is a consequence of the current indecisiveness on the XRP price.
XRP has been forming a red bearish candle since the beginning of February, which is a result of a price crash that took place at the start of the month. Although THE ALTCOIN has since recovered slightly, it has yet to return to its January open.
