- Monday is the deadline for an XRP holder to file a response to Ripple’s motion to dismiss his suit against the company.
- That motion largely sidestepped the plaintiff’s argument that Ripple sold XRP as an unregistered security, instead contesting the case on procedural and evidentiary grounds.
- The suit is unlikely to settle the security question.
- While Ripple presented a strong defense, the case is likely nowhere near complete, and the company will remain at risk of further lawsuits, legal experts say.
Monday will bring the next chapter of a long-running and closely watched lawsuit against Ripple.
The plaintiff, Barry Sostack, has until the end of the day to file a response to the startup’s Sept. 20 motion to dismiss. Assuming it isn’t dismissed in its entirety, the case, which seeks class action status, may move into discovery next year.
At the heart of the dispute is an almost existential question: Whether XRP, the cryptocurrency that Ripple periodically sells to fund its operations, is a security that should have been registered under U.S. law. If it is, as the plaintiff’s complaint argues, Ripple could be at risk of possible enforcement actions by regulators.
But the suit is not likely to settle the matter, legal experts said.
“No one’s finding out whether XRP is a security anytime soon, if ever, at least through this proceeding,” said Rebecca Rettig, a partner at FisherBroyles.
For starters, Ripple’s last motion largely sidestepped the issue. It simply argued that Sostack waited too long to file the complaint and that he did not adequately demonstrate that he bought XRP during the initial sale or from Ripple.