XRP Securities Class Action: Will We Get To Know If It Falls Under Commodity Or Security?

    No. Ripple’s "delay, delay, delay,” approach means, it would be a long time before we do.

    • In XRP securities class action, oral argument on Ripple's motion to dismiss is scheduled for 9 am PT today
    • Ripple CEO, Brad Garlinghouse calls the lawsuit “outrageous,” says XRP has a lot of utility and is a lot different from a security
    • CFTC Chairman says it’s “unclear” if XRP is security or commodity

    The oral arguments in the Ripple’s XRP lawsuit, which was filed by Bradley Sostack claiming Ripple sold XRP as an unregistered security, are scheduled for today.

    In September of last year, Ripple filed a motion to dismiss the suit. But the motion to dismiss like these, Jake Chervinsky, General Counsel at Compound Finance, says in a tweet,

    And if Ripple keeps up with its strategy of “delay, delay, delay,” it would take a long time for the case to get resolved.

    As for whether XRP is a security or not, we won’t be getting to know it because the issue wasn’t raised in the motion, as such won’t come during the oral argument.

    It’s “outrageous” – Ripple CEO

    The San Francisco-based company claims the allegations have no merit and that Sostack’s claim violates the statute of limitations. Ripple’s motion to dismiss claims if XRP is actually security, then Sostack should have filed his claim within three years of XRP’s initial offering, that occurred in 2013.

    But because Ripple continues to sell XRP, the statute of limitations is invalidated, countered Sostack’s legal team.

    Ripple CEO Brad Garlinghouse calls this situation “outrageous,” stating,

    “Here’s somebody who held XRP for, I think, two weeks’ time and is making some claims. Whether or not XRP is a security is not going to be dictated by one lawsuit.”

    He then reiterates that XRP exists independently of Ripple the company and hence isn't a security. Garlinghouse argues that the digital asset would continue to exist even if Ripple shuts down tomorrow, not to mention owning XRP doesn't give anyone the ownership in the company's equity. Garlinghouse told CNBC,

    “Ultimately, XRP has a lot of utility, so to me it’s quite different than what a security looks like.”

    It’s “unclear” if XRP is Security or Commodity – CFTC Chairman

    In a separate event, Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert said it isn’t clear yet whether XRP is a security or a commodity.

    “It’s unclear. Stay tuned I’d say,” Tarbert told news outlet Cheddar on Monday, adding,

    “Part of the issue is that our jurisdiction we share with the SEC [Securities and Exchange Commission]. If it’s a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.”

    The chairman said the CFTC is working closely with the SEC over the last year to “think about which falls in what box.”

    Tarbert also reiterated his views on Bitcoin and Ether being the commodities and not securities.

    “We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether – until now. It is my view as chairman of the CFTC that ether is a commodity.”

    Ripple (XRP) Live Price

    1 XRP/USD =$0.2286 change ~ 2.09%

    Coin Market Cap

    $9.9 Billion

    24 Hour Volume

    $173.41 Million

    24 Hour VWAP


    24 Hour Change


    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Money Is At Risk In Banks, Bitcoin Is Probably The Most Secure Currency Right Now: Tim Draper

    “If we're able to hold above $7,800, it will be a very good sign,” - Mati Greenspan Venture Capitalist advises millennial's to start...

    XRPL Labs Founder Wietse Wind's XRP TipBot Banned On Twitter, A Sign To Come For Tipping Bots?

    On January 24, Twitter decided to disrupt the XRP community by banning the XRP Tip Bot account, which is a service developed by the...

    Litecoin Founder Charlie Lee Proposes 1% Block Reward Funding Plan To Rake in $1.5 Million

    Proposal for donating 1% of block rewards to generate $1.5 million per year It’s like paying for your kid’s college and “securing your...

    Travala Expands Its Crypto Payments Options By Adding NEM's XEM Token

    Travel platform Travala, a firm that allows its customers to pay for hotel accommodations using digital currencies, has partnered with the NEM Foundation to...

    Elon Musk Thinks Crypto Could Be a Replacement for Cash

    Billionaire, SpaceX and Tesla CEO Elon Musk is also known for his cryptic tweets on crypto and Bitcoin (BTC), but on January 20, he...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.