January 11 has been set as the day for the court hearing in the case between Ripple and a class of XRP investors in what has been a long-running legal battle. The outcome of the case is of huge significance as another precedent could be laid for the crypto industry and its stakeholders.
Why This Ripple Case Is Important
The class of XRP investors led by Vladi Zakinov are accusing Ripple of selling XRP as an unregistered security. As such, any ruling made by Judge Phyllis Hamilton could have several ripple effects throughout the crypto industry. For one, it could lead to other class actions being instituted against other crypto firms.
The case is also significant considering that it borders on issues that are in focus in the legal battle between the Securities and Exchange Commission (SEC) and Ripple. The Commission is likely to have its eyes on the case as a ruling in favor of the XRP investors could provide them with more arsenal in what is left of their case against Ripple.
As revealed by Crypto Eri, a prominent member of the XRP community, the court hearing slated for January 11 will focus on the motion to approve the form and manner of class notice. This means that the court will sit to lay out certain legal procedures that will guide both parties throughout the entirety of the case.
Before now, the Judge had already approved the class action despite Ripple’s argument that there weren’t a sufficient number of persons necessary to institute the action. Ripple could be forced to part ways with a significant amount as compensation If this class of investors eventually gets a win over the crypto firm.
Why This Case Is Puzzling
The XRP community has questioned why this class action against Ripple is still in court, considering that Judge Analisa Torres already ruled that XRP wasn’t a security. Specifically, the Judge ruled that XRP programmatic sales could not be classified as investment contracts.
Going by this, there seems to be no reason why the case should go on since most plaintiffs in the class action likely purchased these XRP tokens programmatically. Ripple will, however, likely rely on Judge Torres’s ruling in their arguments as this case proceeds.
Meanwhile, as noted by pro-XRP legal expert Bill Morgan, the number of XRP investors that are in support of Ripple, including those that formed part of the Amicus Curiae, outweighs the number of persons that form this class action. This fact is also something that could play at the back of Judge Hamilton’s mind when making a final ruling on the case.
from Bitcoinist.com https://ift.tt/zedv5nl
https://ift.tt/KjtNpWR January 07, 2024 at 03:00AM