"Wow, before it took many years to complete the case, now there is another one."
Brad Garlinghouse, Chief Executive Officer (CEO) of Ripple Labs and his subsidiary XRP ll, LLC are being sued for violating federal and California securities laws for offering and selling XRP without registration being required.
The class action lawsuit includes individuals and entities that bought XRP between July 3, 2017 and June 30, 2023 either keeping the digital asset or selling it at a loss, but Ripple and the defendants have vigorously contested the allegations.
The string, Ripple's main approach is based on the claim that XRP used for global transactions cannot be considered as a security following it demands many regulatory requirements and strict scrutiny.
However, investors and parties affected by the lawsuit will have to make important choices regarding their rights and legal options where the last date for class action members to opt out of the lawsuit is April 5, 2024.
The legal issues that Ripple is facing represent the regulatory ambiguity that the entire crypto market is trying to combat and show the need for clear policies and frameworks to govern digital assets.
It is well known that the motion submitted by the leading crypto exchange Kraken to dismiss the Securities and Exchange Commission (SEC) lawsuit now adds another narrative on the regulation of digital assets.
As of this writing, XRP price is up 3.48% at $0.55 in the last 24 hours with a market cap of $30 billion but still recorded a 1.65% decline in the last seven days.
