Ripple VS SEC Lawsuit Moved To Magistrate Judge For Settlement

Ripple VS SEC Lawsuit has been referred to the magistrate judge for settlement as Judge Hamilton sided with Judge Torres’ ruling on XRP sales.

The defendants’ motion for summary judgment in the Zakinov v. Ripple litigation was partially granted and partially denied by a U.S. district court judge, who referred the case to a magistrate judge for settlement. The SDNY court’s judgment that XRP programmatic sales are not securities was also disregarded by the judge, which sparked a heated debate within the XRP community.

Ripple Class Action Lawsuit Is Pursuing Settlement

In the class action lawsuit against defendants Ripple, XRP II, and CEO Brad Garlinghouse, Judge Phyllis Hamilton of the District Court for the Northern District of California has issued an order.
The judge approved the defendants’ motion for summary judgment regarding the federal and state class claims.

According to CoinGape, under California law, defendants are denied summary judgment on plaintiff Sostack’s claim. Additionally, Ripple excluded the testimony of Steven P. Feinstein, and the plaintiff excluded the testimony of S.P. Kothari and M. Laurentius.

The Ripple case was referred to Magistrate Judge Robert Illman for resolution between the parties in a subsequent order by Judge Phyllis Hamilton. Judge Hamilton rejected SDNY Judge Torres’ summary judgment regarding XRP programmatic sales, asserting that investors did depend on Ripple’s endeavors to generate profits.

Effect of XRP Lawsuit on Ripple’s Relationship with SEC

The Ripple vs SEC lawsuit has been the subject of speculation in the XRP army regarding the potential impact of Judge Hamilton’s decision to disregard Judge Torres’ decision. This decision has sparked concerns regarding XRP’s status as a non-security.

According to former SEC counsel Marc Fagel, the primary concern for Ripple is the SEC’s use of this California case in the Second Circuit in its appeal against Judge Torres’ summary judgment on XRP. Nevertheless, the court must determine whether XRP transactions were securities to address fraud.

Pro-XRP Bill Morgan and Fagel also stated that the litigation may not have broader implications, even in an adverse finding for Ripple.

She did not reject the holding. She did not apply it on a summary judgment motion to rule out at trial a finding that retail buyers may have an expectation of profits based on Ripple’s efforts rather than other factors such as general crypto market trends.

— bill morgan (@Belisarius2020) June 21, 2024

The price of XRP has been range-bound this week, trading at $0.489. It has fallen to a low of $0.486. The price surged above the $0.50 threshold but declined, with a 24-hour high and low of $0.4906 and $0.5002, respectively. In the past 24 hours, the trading volume has increased by 9%, suggesting some interest among traders.