Crypto Lawyer: Don’t Hold Your Breath On Ripple Security Ruling

Crypto Lawyer: Don’t Hold Your Breath On Ripple Security Ruling

Jake Chervinsky is a popular United States lawyer who has more than 22,000 followers on Twitter. He works for the prominent law firm Kobre & Kim and has recently said that the cryptocurrency industry shouldn’t expect a decision to be made on XRP’s status as a security.

Chervinsky took to Twitter last week to rant and break down the lawsuit that Ripple is dealing with and laid out what we can expect will come of it over this year.

The lawsuit is still in its early stages but it has been talked about for a while now:

“Even though we’ve been talking about the Ripple securities litigation for almost a year, the case basically just started this week, and it’ll be a very long time – another year or more – before anything truly interesting happens.”

This lawsuit was filed to determine whether or not Ripple’s XRP token should be classed as a security. The plaintiffs have argued that Ripple misleads investors about the potential future price of the digital asset as well as believing that XRP was acting more like a stock than the currency they thought they were buying into.

The US lawyer sees the standard red tape slowing the process of the suit along with legal posturing from both sides which is putting the brakes on the matter.

“After the consolidated complaint is filed, Ripple will *finally* have to submit a substantive response. I expect that will be a motion to dismiss, arguing that the allegations in the complaint–even if true–don’t add up to a violation of the securities laws.”

In the end, Chervinsky said that enthusiasts shouldn’t hold their breath for a decision to be made anytime soon saying, “so when will we know if XRP is security? Probably not in 2019 unless Ripple decides to change course & voluntarily treat XRP as security (which I sincerely doubt). Class actions are good for many things, but quickly resolving complex securities issues isn’t one of them.”

The court systems can be long which can be done on purpose.

This is similar to the Bitcoin ETF decision by the SEC and the approval of the very anticipated Bakkt platform.

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