Ripple Won Another Procedural Victory: Is a Victory Coming?

The US District Court for the Northern District of California granted Ripple’s critical summary judgment motion. Thus, Ripple scored a procedural victory in the class-action lawsuit in Oakland, when a judge rejected several arguments. Meanwhile, pro-Ripple lawyer Jeremy Hogan expresses doubt that the SEC will achieve a clear victory in its appeal against Ripple. The complexity of the case could drag out legal proceedings even if the SEC initially wins.

Ripple gained a win against the SEC with the acceptance of its request!

Judge Phyllis Hamilton rejected many of the class action arguments against Ripple. Both the federal class arguments for unregistered securities and the state law security arguments were rejected. This is a procedural victory for Ripple. However, the dismissal of the case did not address the fundamental question of whether XRP is a security.

Ripple’s Chief Legal Officer, Stu Alderoty, expressed his satisfaction with the court’s decision. In this context, Alderoty said, “We are pleased that the California court rejected all class action claims. “The only remaining individual state law argument will be addressed at the hearing.” said.

The committee will decide whether XRP is a ‘security’ or not!

However, the court noted that XRP’s status as a security is still unknown, even with procedural gains. The court noted that it was up to the panel to decide whether all three prongs of the Howey test were met. Along with the class-action lawsuit, another civil securities lawsuit filed against Ripple CEO Brad Garlinghouse will also go to trial. In that case, the court denied a portion of Ripple’s motion for summary judgment regarding the argument that Garlinghouse sold unregistered securities in 2017. The plaintiff argues that Garlinghouse was lying about being “very, very long XRP” while dumping millions of XRP on various exchanges.

However, legal expert Fred Rispoli said that if the plaintiff wins, there are low losses for Ripple. He also stated that, given the potential negative panel decision, the possibility of a compromise is high. Rispoli also emphasized that the question of whether XRP is a security remains unanswered. He stated that federal legislation is needed to address this issue.

Ripple’s lawyers argue that XRP does not meet the Howey Test’s definition of a security. Therefore, he argues that the case should be dismissed. However, Judge Hamilton ruled that the case should proceed to trial. Additionally, it ruled that it cannot be legally determined that Ripple’s behavior would lead a reasonable investor to expect a profit due to the company’s efforts.

SEC faces fierce backlash in Ripple appeal

Jeremy Hogan, a pro-XRP lawyer, has expressed doubts about the SEC achieving a decisive victory in its ongoing legal battle with Ripple. The case, which is currently set to be heard in the U.S. Court of Appeals for the Second Circuit, may not turn out favorably for the SEC even if it wins the appeal. Hogan believes the complexity of the case means the SEC could face a fierce effort on appeal. Even with a possible win, the case will likely return to the trial court for further factual considerations. This reflects a scenario in which a primary SEC victory could lead to longer legal proceedings.

cryptokoin.com As you follow from , a district court ruled that XRP is not a security. This decision brought about various comments. The decision held that XRP tokens are not securities when sold to personal investors on exchanges. However, the same decision concluded that Ripple’s sales to institutional investors violated federal securities laws. Former SEC Section Chief Kristina Littman hinted that there is a possibility that the SEC may not appeal the Ripple decision to a higher court and that the decision may remain the opinion of an independent district court. This decision runs counter to the previous SEC decision in the Terraform Labs case. This case argued that a token’s legal status should not vary based on investor type. This different perspective was instrumental in the Coinbase decision and was considered a victory for the SEC.