Ripple CEO Brad Garlinghouse has publicly criticized CoinDesk, a prominent crypto news outlet, for its allegedly inaccurate reporting on a recent court ruling concerning XRP. Last week, California District Judge Phyllis J. Hamilton issued a significant decision in a securities class action against Ripple, dismissing all claims of securities law violations. However, she did schedule a jury trial to address a state law claim related to a statement made by Garlinghouse in 2017.
Despite this clear outcome, some media sources misinterpreted the ruling, suggesting that it might impact XRP’s status as a non-security, a classification affirmed earlier by New York federal Judge Analisa Torres. Garlinghouse promptly addressed these misconceptions, reaffirming that XRP itself is not considered a security.
Garlinghouse specifically took issue with a recent report from CoinDesk, which claimed that Judge Hamilton hinted at XRP possibly being a security. In response, Garlinghouse refuted this interpretation, accusing the respected media outlet of spreading misinformation.
“The CA Judge did NOT call XRP a security,” Garlinghouse asserted, emphasizing that both XRP and Bitcoin are recognized as non-securities under current U.S. regulatory standards. He also highlighted how CoinDesk retracted a misleading tweet and corrected a headline, suggesting a pattern of unreliable reporting.
Adding to the criticism, pro-XRP legal expert Bill Morgan lambasted CoinDesk for its portrayal of XRP’s legal status. Morgan clarified that Judge Hamilton did not rule on whether Ripple’s sales of XRP in secondary markets constitute investment contracts, a specific type of security. In contrast, Judge Torres previously determined that XRP does not qualify as a security and classified Ripple’s sales as non-investment contracts. Morgan underscored that XRP currently enjoys more legal clarity than Bitcoin in this regard.
“Spreading misinformation about XRP’s legal status nearly a year after the Torres decision is misleading,” Morgan remarked, echoing sentiments expressed by the X community and Ripple’s Chief Legal Officer Stuart Alderoty.
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