How often have we heard from executives from Ripple say, “Ripple is not a security?” The answer to the question can have a massive effect on the market. However, until now, there hasn’t been an official ruling or claims on it.
As reported earlier on CoinGape, investors in XRP had filled a case against Ripple for misleading and selling unregistered security. The lawsuit was filed in July 2018, until now Ripple has successfully averted a trial.
At the beginning of this year in February, Ripple achieved a minor victory to gain a tactical advantage in the case. Nevertheless, the plaintiff’s lawyers Taylor-Copeland filled another case in California in August. Due to the difference in state laws in the US, California provides the investors with an advantage.
Ripple’s Motion to Dismiss (Source)
Winning On a Technicality
On Friday, Ripple moved to dismiss the lawsuit on legal grounds. It was a lengthy and detailed filling that built the case for Ripple in court. However, Ripple has avoided dismissing the motion based on the claims. Jake Chervinsky, a lawyer who is closely watching and analyzing the case noted,
When you hear the phrase “winning on a technicality,” it usually means the defendant prevailed on an argument to the effect of: “it doesn’t matter if I did the bad thing you claim I did; the law says you can’t do anything about it.
Ripple has claimed that the investors were not in a position to file the claims due to the expired timeliness. Moreover, it has also denied several other allegations of XRP sale by Ripple. However, it has avoided clarifying in writing why ‘XRP is not a security.’
Furthermore, the points raised by Ripple successfully avoids the courts from ruling on them as well.