In early August 2019, a complaint was submitted against Ripple claiming that its XRP tokens are unregistered securities under the United States’ law. The complaint also stated that Ripple had violated California’s securities laws and engaged in false advertising and unfair competition.
Ripple then allegedly filed a motion to dismiss the lawsuit in September 2019, claiming the case was not brought forward in a timely manner. Reportedly, Judge Phyllis Hamilton of the Court of the Northern District of California dismissed Ripple’s claims on February 26th.
Notably, the case remains open and the firm believed the established XRP market will be destroyed as they go forward with the trial. Although the legality of XRP remains uncertain at the moment, the token seems to stand out as potential security under U.S. regulations, according to the Crypto Rating Council.
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Nurul is an English Language graduate who is highly passionate on writing, she literally breathes on it. An avid reader and a critical thinker, she covers on blockchain news during day and weeps at sad novels at night.