New rulings in California raise questions about XRP’s future as Ripple battles securities claims.
Legal Battles Continue for Ripple in XRP Lawsuit
In recent updates on the Ripple litigation in California, new court rulings bring fresh clarity to this ongoing case, which centers on alleged securities law violations by the cryptocurrency firm Ripple. The Ripple v. SEC drama keeps XRP’s future in flux, with settlement discussions underway and pretrial activities set for late 2024.
Judge Rules on Key Motions in Ripple Case
U.S. District Court Judge Hamilton’s recent decision largely favors the plaintiffs, allowing four key motions under the Daubert rule. This includes denying Ripple’s attempt to exclude the testimony of plaintiffs’ expert Jeremy Clark, along with their effort to block testimony from economist Saifedean Ammous.
Expert Testimonies Under Review
The court ruled in favor of excluding Ripple’s expert Alan Schwartz but allowed testimony from plaintiff’s expert Joel Seligman. Ripple’s objection to Clark’s report, claiming he lacked specific XRP expertise, was dismissed, with the court affirming the relevance of Clark’s testimony about Ripple’s influence on XRP Ledger.
Disputed Opinions on XRP’s Value Influence
The court acknowledged differing views on XRP’s price control. Experts Ferrell and Ammous disagree on whether Ripple’s actions impact XRP’s price—a decision left to the jury to determine.
Unresolved State-Level Questions
Legal expert Fred Rispoli points out the ongoing uncertainty regarding XRP’s classification at the state level. The California case, based on state law, remains separate from the SEC v. Ripple case, rooted in federal law. However, its implications could influence future cases involving cryptocurrency regulations.
Federal vs. State Implications on XRP
Judge Torres’ earlier ruling in the SEC case declared that Ripple’s institutional sales of XRP violated federal securities laws. However, secondary market sales to retail investors were excluded from securities classification, further adding layers to XRP’s regulatory situation.
Key Dates and Settlement Talks
Parties in the XRP lawsuit have agreed to settlement discussions as the court sets a pretrial conference for December 2024, followed by jury selection in January 2025. These upcoming steps are crucial as both federal and state-level rulings weigh on XRP’s future.
Broader Impact on Crypto Regulation
The Ripple case highlights the complex and evolving legal landscape surrounding cryptocurrency. As regulatory frameworks develop, the results of this lawsuit could set precedents for future crypto-related cases and influence the legal treatment of digital assets nationwide.
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Ripple’s ongoing legal battles over XRP’s state classification bring new challenges, with major rulings in California court unfolding.
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