2024

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<p>The post <a href="https://coinpedia.org/news/ripple-vs-sec-update-new-class-action-adds-to-legal-tangle-with-sec-xrp-status-at-stake/" rel="noopener noreferrer nofollow">Ripple vs SEC Update: New Class Action Adds to Legal Tangle with SEC, XRP Status At Stake</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>The year 2024 seems to be leaving the league for Ripple after losing its stance in the discovery phase with the SEC; Ripple is in another legal scoop with California regulators.&nbsp;</p>
<h2 class="wp-block-heading" id="h-ripple-s-political-chessboard-senators-vs-state-prosecutors"><strong>Ripple’s Political Chessboard: Senators vs. State Prosecutors</strong></h2>
<p>Ripple Labs Inc., CEO Brad Garlinghouse, and its subsidiary XRP II, LLC, are facing a fresh legal battle in California, where it’s being sued for allegedly selling XRP without the required registration and violating securities laws. However, Ripple denied such claims.&nbsp;</p>
<p>The lawsuit, <a href="https://www.rippleclassaction.com/admin/api/connectedapps.cms.extensions/asset?id=e2224863-bdcd-4842-b19d-74f61b4c2db2&amp;languageId=1033&amp;inline=true" rel="noopener noreferrer nofollow">filed </a>in the Northern District of California, accuses Ripple of flouting federal and state securities laws by offering and selling XRP without proper registration. The plaintiffs seek to represent two groups: the Federal Securities Claims Class and the California State Securities Claims Class, comprising individuals and entities who bought XRP between July 3, 2017, and June 30, 2023.&nbsp;</p>
<p>In response to the motion, Ripple rebuffed these allegations, arguing that XRP isn’t a security and thus doesn’t require registration.</p>
<p>Unfortunately, this regulatory lawsuit puts Ripple on a tightrope, so far Ripple got the backing of many senators and legislative support but the California case may complicate its winning path with the SEC. Ripple argues that XRP isn’t a security but a digital currency for global transactions. The case’s outcome could shape how U.S. regulators treat digital assets, affecting the entire cryptocurrency market.</p>
<h2 class="wp-block-heading" id="h-investor-dilemma-to-opt-out-or-not"><strong>Investor Dilemma: To Opt Out or Not?</strong></h2>
<p>As per the new class action, those impacted by the lawsuit have until April 5 to choose whether to opt-out and pursue separate legal actions against Ripple. This choice highlights the significant consequences of the lawsuit for both Ripple and stakeholders in the digital currency market.</p>
<p>Meanwhile, Ripple’s legal woes extend beyond this class action lawsuit as it grapples with a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in December 2020. The SEC alleges that Ripple conducted an unregistered securities offering of $1.3 billion through XRP sales.&nbsp;</p>
<h2 class="wp-block-heading" id="h-regulatory-mess-continues"><strong>Regulatory Mess Continues…</strong></h2>
<p>Recent developments, such as the motion filed by digital asset exchange Kraken to dismiss the SEC lawsuit, further complicate the regulatory landscape. Kraken’s motion references a ruling by Judge Torres regarding programmatic sales, highlighting legal strategies employed by investors and traders to address regulatory scrutiny. Overall, Ripple’s extended legal battles highlight the cryptocurrency industry’s regulatory uncertainties and underscore the need for clear policies governing digital assets.</p>

Ripple vs SEC Update: New Class Action Adds to Legal Tangle with SEC, XRP Status At Stake

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