Why Ripple’s ‘currency’ classification still hangs in the balance?

  • A US court judge delays the ruling on Ripple’s motion to dismiss.
  • Regulators continue to seat on the fence regarding Ripple’s classification as a currency or a security.

Ripple, the company behind the issuance of XRP desires nothing but for the token to be classified as a ‘currency’ just like Bitcoin and Ethereum. However, with the ongoing class-action lawsuit, this fate hangs in the balance.

Ripple’s filed motion to dismiss the lawsuit is reported to have been taken under submission at the United States District Court for the Northern District of California.

However, the judge, Phyllis J. Hamilton did not give the verdict as scheduled in a hearing on January 15. It is unclear how long the judge will take to decide on the case that has been running for three years. The motion to dismiss was reported to have been filed in December by Ripple Labs. Ripple Labs argued that the plaintiff, Bradley Sostack filed after a three-year window had elapsed. However, the plaintiff is adamant to accept the terms and wants the company to take responsibility for the illegal sale of 'security' tokens.

Regulators remain undecided on the status of XRP

The Chairman of the Commodity Futures Trading Commission (CFTC), Heath Tarbert chose not to refer to XRP as a security or a commodity in a recent interview. At the same time, he did not object to the possibility of XRP coming under the oversight of the US Securities and Exchange Commission (SEC)?

In retrospect, even if the judge allows Ripple’s motion to dismiss to sail through, its future as a cryptocurrency lies in the balance and it will be up to the SEC to decide. Even a slight crackdown on XRP could bring an imbalance in the market and a possible sell-off.

Read alsoRipple Price Analysis: XRP/USD holds above $0.22 support amid widespread correction

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD low volatility indicates a significant move to $8,000 or $10,000 is nearby

Bitcoin price is currently at $9,229 after a brief dip to $9,104. It is currently below the daily 12-EMA and the 26-EMA which have been unable to cross positively due to the lack of bullish continuation. 

More Bitcoin News

XRP/USD do-or-die scenario at $0.20

The XRP price target at $0.21 is slowly fading away after an extended consolidation period. XRP is still fighting to stay above $0.20 while daily EMAs...

More Ripple News

ETH/USD still on its way to $250 as the market cap of ERC-20 tokens surpassed Ethereum

Ethereum has been outperforming Bitcoin for quite some time and it’s still really close to cracking $250. Ethereum price is at $240.32 after a slight drop below the daily 12-EMA...

More Ethereum News

ADA/USD 8% explosion towards $0.138 could indicate that bulls are ready for $0.15

ADA/USD had a significant drop to $0.12 after getting rejected at $0.136 on July 13. The bulls managed to buy the dip and have pushed ADA above $0.13...

More Cardano News


Bitcoin Weekly Forecast: BTC volatility drops to a year low, get ready for a spiral drive

The week was tough for the cryptocurrency markets confined to tight ranges. Bitcoin has lost 1% of its value during the recent seven days with the trading range limited by $9,298 on the upside and $8,933 on the downside.

Read the weekly forecast