The current lawsuit against Ripple Labs: What’s the reason behind it?

Seven years ago, during a TV interview, the entrepreneur had expressed his strong support for XRP. However, an investor is now claiming that this statement was misleading because the entrepreneur had sold XRP worth millions of dollars in the same year. Despite some claims being dismissed, Ripple Labs received a small victory in the lawsuit, with the judge ruling in their favor on four claims. Garlinghouse criticized the reporting of the ruling in crypto media, emphasizing that the case was a “big win.”

The context of the situation reveals a slight victory for the U.S. Securities and Exchange Commission, as the judge agreed that securities laws were violated when XRP was sold to sophisticated investors. However, the case becomes more complicated, with the judge suggesting that XRP could potentially be considered a security, even when sold to non-institutional investors, due to the expectation of profits. Garlinghouse has refuted the idea that his statements were misleading and anticipates discussing this in court. He also expressed concern about the growing anger in the crypto industry directed at the SEC and the White House.

Meanwhile, Alderoty has questioned Gensler’s claims about the SEC adjusting to court decisions, and Ripple Labs seems determined to make a significant impact as the November election approaches.

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