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Ripple Labs executives are now openly criticizing the SEC on Twitter, and claim that Gary Gensler will be the reason why Joe Biden loses the election. The legal headaches at Ripple Labs just keep on coming. A judge has now concluded that part of a civil securities lawsuit in California will go ahead, and it all centers on four words said by Brad Garlinghouse, the company’s CEO. During a TV interview seven years ago, the entrepreneur had declared he was “very, very long XRP” — a seemingly innocuous and unsurprising statement. But an aggrieved investor is arguing this was misleading, considering that Garlinghouse had sold XRP worth millions of dollars in that same year. There was a little bit of good news for Ripple Labs though, as Judge Phyllis Jamilton ruled that four other claims in the lawsuit won’t proceed to trial. Garlinghouse railed against how the ruling had been written about in crypto media — pointing to what he described as “misleading headlines” about the case. He went on to add: “To be absolutely clear, this is a big win — all class action claims in the suit were DISMISSED, and absolutely nothing in the decision negates or changes the fact that XRP is, in and of itself, not a security.” Brad Garlinghouse Let’s zoom out a little bit here to get the context. In a significant judgment last year, a court in New York had concluded that XRP was “not in and of itself” a security, and no securities laws were broken when the altcoin was sold on crypto exchanges. However, there was a slight victory for the U.S. Securities and Exchange Commission too, as the judge in that case had agreed that securities law was violated when XRP was sold directly to sophisticated investors. The SEC is…

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Filed under: News - @ June 30, 2024 8:22 am