Californian judge will let XRP lawsuit to proceed against Ripple

[Baofeng]

Official court documents (updated)

Zakinov v. Ripple Labs, Inc.

https://www.courtlistener.com/docket/8150354/85/zakinov-v-ripple-labs-inc/

So it seems that Federal Judge Phyllis Hamilton will let lawsuit goes on as he was not convinced by Ripple attorney and argument. He didn't agree that Ripple's complaint was not filed in time and he didn't think that the lawsuit will destroy their business and market share, (still 3rd crypto as of press time).

So another interesting court battle to watch. Are Ripple selling unregistered securities?

[1714776095]

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[1714776095]

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[Tll]

Coindesk writes about Ripple in year 2013, 7 years ago.  There is no mention of XRP being registered or not.   https://www.coindesk.com/10-things-you-need-to-know-about-ripple

Accredited Investors wanted to fund unregistered ICO-related fundraisings.

https://www.marketwatch.com/story/icos-continue-to-raise-money-via-sec-back-door-2019-01-11 

Unregistered ICOs were penalized $250k and ordered to do refunds and registering. https://www.sec.gov/news/press-release/2019-267

[Ryker1]

Well, in my own opinion. It is clear that if the XRP is considered as security, then XRP is not yet been registered. There is no such thing as registration in cryptocurrency since it was created to be decentralized. It is just that, --XRP is a coin that might be able to be considered as a prepaid/utility just like ERC-20 tokens. I am guessing that Ripple would win the case and will be able to avoid the lawsuit. The government has not been revised the code when the cryptocurrency was just getting started.
My point is that cryptocurrencies were created to take advantage of the law's loopholes. Indeed, so the law could not sue someone in the cryptocurrency industry until they revised the code.

[eaLiTy]

My point is that cryptocurrencies were created to take advantage of the law's loopholes. Indeed, so the law could not sue someone in the cryptocurrency industry until they revised the code.

This is a wrong assessment, BTCitcoin is not created to take advantage of the loopholes but the rest of the coins in the market might be doing simply that to make money and to game the law . The problem with XRP as a security is that they are not registered in the US and since they are still selling the coins then they are liable to be prosecuted as per the law and how long this drama will continue is to be seen.

[btc_angela]

My point is that cryptocurrencies were created to take advantage of the law's loopholes. Indeed, so the law could not sue someone in the cryptocurrency industry until they revised the code.

This is a wrong assessment, BTCitcoin is not created to take advantage of the loopholes but the rest of the coins in the market might be doing simply that to make money and to game the law . The problem with XRP as a security is that they are not registered in the US and since they are still selling the coins then they are liable to be prosecuted as per the law and how long this drama will continue is to be seen.

I totally agree, how can you someone say that bitcoin or at least some crypto was created to take advantage of the loopholes? There's still a lot of question of XRP though, I'm not siding on the judge, but it looks like he see something here that needs to be explored more that's why he allowed the lawsuit to continue. And so far it hasn't had any effect, XRP is still the number 3 coin in the market.

[Harlot]

I still have mix feelings about this one considering the precedent it will bring in the crypto industry. A ruling in favor for Ripple would mean that the advantage will be for the crypto developers that even if they failed to bring their project on track the investors has nothing to do in the hopes of their crypto to grow depending on how the project will progress. However a ruling in favor of the investors would mean that the advantage will be for buyers of any crypto project which would make their investors easily come for them, the bad thing about this one is of course projects who have might side track a bit will be under this kind of class lawsuits from their disgruntled investors. So really the crypto industry here for the US will have a bad precedent that could slow things down for crypto projects overall.

[squatter]

It will be interesting to see whether and how the courts apply securities law in this case. Since there was no ICO-style fundraising involved, I'd like to see whether the Ripple case fits the "common enterprise" requirement of the Howey Test.

The term "common enterprise" isn't precisely defined, and courts have used different interpretations. Most federal courts define a common enterprise as one that is horizontal, meaning that investors pool their money or assets together to invest in a project. However, other courts use different definitions.

One of the issues the plaintiffs are focusing on is the extent of Ripple's control over the XRP supply. If they are successful in this line of argument, the case could have implications for other "utility tokens" like Binance's BNB.

[jackg]

As the others have alluded to, keeping a case going forward and sustaining a prosecution are two completely different things.

If you're not under time pressure to answer a question and can come back to it after with a group of people, it's much better to do it that way and you can come to an appropriate decision in time.

I don't know and guilty are two completely different things and the fact it's pushed to a lawsuit as squatter said means that they can get a concise answer for better referencing in future cases and projects... To know if something was legal or not.

[zasad@]

https://decrypt.co/143450/sec-removes-director-william-hinmans-bio
SEC Quietly Removes Director William Hinman's Bio From Website
Hinman worked at the commission from May 2017 through December 2020. That's it. That's the whole bio after the SEC updated the page.
"
An adage for the digital age says nothing can ever be deleted from the internet. Yet, the Securities and Exchange Commission (SEC) has done its best to scrub the biography page of William Hinman.

Hinman was the director of the SEC's corporation finance division from 2017 through 2020.
..
Hinman said crypto’s two most significant coins should not be considered securities because they were sufficiently decentralized—from his point of view. And years later, Hinman’s speech looms large in the SEC’s ongoing case against Ripple over the XRP token."

___
Hinman Documents Are Out, XRP Price Rallies – Is $1 Imminent or Just a Bull Trap?
https://coinpedia.org/news/hinman-documents-are-out-xrp-price-rallies-is-1-imminent-or-just-a-bull-trap/

[safar1980]

Ripple, SEC Seem to Agree About Not Taking Hinman Speech Seriously
SEC emails illuminated ex-official Hinman’s 2018 view on ETH, which Ripple’s top lawyer said was used to ‘destroy and disrupt’ U.S. crypto, but this probably won’t steer agency policy.
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) seem to be on the same page about the documents known as the Hinman Emails: The former official’s past remarks shouldn’t govern current policy.

[zasad@]

https://www.cnbc.com/2023/07/13/xrp-surges-after-judge-delivers-a-huge-win-to-ripple-in-its-case-against-the-sec.html
XRP coin surges after judge delivers a huge win to Ripple in SEC case
"The judgments today are a huge step forward for the industry," Chris Martin, head of research at Amberdata, told CNBC. "By judging that XRP is not a security we're starting to get clarity on what constitutes a security and what constitutes a commodity — the SEC will have to revise their tactics on several of their ongoing cases and I expect that this judgment will implicate several other tokens as non-securities."

[safar1980]

U.S.-based cryptocurrency company Ripple says it’s planning to fight the ongoing lawsuit with the U.S. Securities and Exchange Commission “all the way through.”

“We are planning to continue to fight the case all the way through,” Monica Long, Ripple’s president, told CNBC on Monday.

The lawsuit between Ripple and the SEC has stretched for nearly three years.
https://www.cnbc.com/2023/09/13/ripple-says-it-will-fight-the-sec-lawsuit-all-the-way-through.html

[Text]

On September 7, 2023, U.S. District Judge Phyllis Hamilton denied Ripple’s motion to dismiss the lawsuit, ruling that the plaintiffs have sufficiently stated a claim for fraud and that the statute of limitations does not apply in this case. She also rejected Ripple’s argument that the lawsuit would cause irreparable harm to its business and the XRP market, noting that Ripple has not shown any evidence of such harm.

https://www.inferse.com/714841/xrp-price-prediction-as-ripple-lawsuit-set-to-conclude-in-2023-cryptonews/

[zasad@]

https://thecryptobasic.com/2023/11/14/court-sets-schedule-for-sec-v-ripple-remedies-litigation-here-are-next-important-dates/
"Court Approves SEC Litigation Schedule Against Ripple, Here Are The Next Important Dates
According to a court order dated November 13, the remedies briefing will officially commence by February 12, 2024. On this date, both the SEC and Ripple will officially complete all remedies-related discovery.

After the party completes the discovery, the Securities and Exchange Commission will file its remedies brief by March 13, 2024. Additionally, the defendants, Ripple Labs, shall submit its opposition to the SEC’s motion on April 12, 2024. Furthermore, the SEC shall file its reply to the opposition by April 29, 2024. "

[zeuner]

My point is that cryptocurrencies were created to take advantage of the law's loopholes. Indeed, so the law could not sue someone in the cryptocurrency industry until they revised the code.

This is a wrong assessment, BTCitcoin is not created to take advantage of the loopholes but the rest of the coins in the market might be doing simply that to make money and to game the law . The problem with XRP as a security is that they are not registered in the US and since they are still selling the coins then they are liable to be prosecuted as per the law and how long this drama will continue is to be seen.

Lawmakers will usually try to define things in a manner abstract enough to be applied to new situations. Explicitly trying to craft something around loopholes might have been tried in some altcoin or another. But ultimately these things will converge and laws will be revised so they lead to balanced results for new phenomena.

[coolcoinz]

I never liked Ripple. On one hand I don't want to cheer for the SEC, but I also don't want to support centralized shitcoins that employ trolls who wipe their butts with Satoshi, liberties, and attack Bitcoin with FUD campaigns.

Here's an article if you don't know what I'm talking about.
https://www.coindesk.com/tech/2022/03/29/bitcoiners-scoff-at-chris-larsens-5m-campaign-to-force-a-btc-code-change/

So, you either are a bitcoiner, or a shitcoiner. You can't support both because XRP is trying to undermine bitcoin with FUD, so these people are trying to make your savings worth less.

I believe that XRP is a security and therefore isn't equal to bitcoin. If it loses this case I won't cry for Garlinghouse and his team.

[zasad@]

I never liked Ripple. On one hand I don't want to cheer for the SEC, but I also don't want to support centralized shitcoins that employ trolls who wipe their butts with Satoshi, liberties, and attack Bitcoin with FUD campaigns.

Here's an article if you don't know what I'm talking about.
https://www.coindesk.com/tech/2022/03/29/bitcoiners-scoff-at-chris-larsens-5m-campaign-to-force-a-btc-code-change/

So, you either are a bitcoiner, or a shitcoiner. You can't support both because XRP is trying to undermine bitcoin with FUD, so these people are trying to make your savings worth less.

I believe that XRP is a security and therefore isn't equal to bitcoin. If it loses this case I won't cry for Garlinghouse and his team.

It doesn’t matter what Ripple is. This team deserves great respect that they were able to give a good slap in the face to the SEC, although previously the SEC was considered an invincible organization and everyone was afraid to sue it. We won't know how much stress this cost the team, but I respect them for that.
As for the coin, this is a personal question for investment.