Its classification as XRP has raised a variety of issues which led to an action in a class used to determine the definition of the digital asset. Ripple’s CEO Brad Gradlinghouse, recently confirmed the news, and expressed his thoughts on the subject. He further stated that XRP does not fall under the category of asset security. This isn’t to suggest that it will happen, but Bitcoin Digital claims to substantially improve your chances of making money. The main reason came from the lawsuit that was initially initiated against the company because of its involvement in the sale of unregistered tokens in the year 2018. In the end, the Ripple firm’s motion, filed in December of 2019 asked for the case be dismissed due to the lack of legal merit.
Filed Motion by Ripple
Based on the dismissal of the lawsuit’s motion The United States District Court for the Northern District of California keenly examined and accepted the motion in submission. The announcement of the ruling was scheduled to be made on the 15th of January however, indications point to the court taking longer to issue the final judgement.
Garlinghouse’s Comments on XRP
Recently, Garlinghouse shared his reviews with CNBC and shared his insights on not using XRP as an asset security. After his research in the past, he ruled out the Ripple company from any responsibility in connection with the XRP security concerns. He also outlined specific reasons for why the asset shouldn’t be categorized as security. Following the tweet of Digital Assets Daily, the reviewed review was clear in stating Brad Gradlinghouse’s views according to his words „I believe it’s obvious that XRP isn’t considered a security. ….“ The main aspect he was trying to drive to the forefront was the significant distinction between the XRP coin and the Ripple company; they are very different entities. The principal idea behind the claim was that XRP could exist even it were the Ripple firm was to take over. He stated that „It’s an independent open-source technology.“
He also stated that XRP is not a significant link with the Ripple company. In this case, the fact that a person owns XRP does not mean the owner is entitled to any stake in the Ripple company. Gradlinghouse said that XRP didn’t have enough backing to be considered as an asset security. However, he couldn’t provide a clear explanation of why he did not consider the coin an asset. The official also said that should the reasons for the decision be reversed then the official decision could result in the sale of panic that will result in a plunge in prices.