Weiss Crypto Rating has said the present class-action lawsuit against Ripple Labs Inc. has silver lining for the company and digital token XRP.
The “nation’s leading provider” of independent, unbiased, trusted ratings of Stocks, Mutual Funds, Cryptocurrencies and some other assets, says the court case has the potential of settling the issue of whether or not XRP is a security.
Ripple Battling Open-ended Class Action Lawsuit, SEC Could File Another –Weiss
Weiss Crypto Rating also foresaw the possibility that the America’s Securities and Exchanges Commission (SEC) could file another lawsuit against Ripple, if the enterprise software company wins the present class-action lawsuit.
Weiss, in a two-part thread said even if Ripple Labs Inc. wins the particular class-action lawsuit filed before the Northern District Court of California, there is a high chance the SEC files another before the District Court for the Southern District of New York.
In a concluding tweet, the crypto rating firm shows its point of belief that Ripple and XRP may at the end be vindicated. This, the platform says will translates to blessing for the software enterprise firm.
Ripple Requests Judge Strikes Out Court Cases
Ripple has officially requested that the Northern District of California’s Judge Phyllis Hamilton to dismiss the class-action lawsuit filed against it.
Ripple prayed the judge consider that the future and fate of the “half a trillion XRP market” is arguably in her hands.
Ripple Labs said the Judge’s decision to continue the lawsuit “would not only threaten to eliminate XRP’s utility as a currency, but it would upend and threaten to destroy the established XRP market more broadly — a market involving over USD 500 billion in trading over the last two years.”
If the Judge continues, Ripple says the action has the potential of destroying “the value held by the alleged thousands of individual XRP holders around the world (many of whom no doubt disagree with Plaintiff’s claim that XRP is a security).”
Is XRP a Security or Commodity?
Chairman, U.S. Commodity Futures Trading Commission (CFTC), Heath Tarbert, has spoken on whether XRP is a security or commodity.
The chairman of the regulatory body, during an interview section with Cheddar, did not offer a clear answer regarding whether XRP is a commodity, however, he said it could be claimed at the moment that XRP is a security or a commodity.
The chairman said: “It’s unclear. Stay tuned I’d say. Part of the issue is that our jurisdiction we share with the SEC. If it’s a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.”
While Ripple executive continues to claim XRP is not a security, or that the digital currency does not have anything to do with the company, observers have continued to insist that the digital currency is an investment contract of Ripple Labs Inc.
A recent partnership with MoneyGram allayed the doubts of investors who thought the digital currency could later be declared a security.
