Jake Chervinsky, the crypto legal expert working for Kobre & Kim has recently made it clear that the security ruling on Ripple might not come anytime soon. The security status of Ripple may not arrive anytime soon, and definitely not in 2019.
Ripple has been often marred into controversy for the level of centralization on its circulation supply. Jake created a Twitter storm while breaking down the lawsuit that Ripple currently faces. In his tweets, Jake laid down various aspects of the lawsuit and how it may pan out in 2019.
Jake said while the lawsuit had been in the news recently and many people seem to be interested over the future of Ripple, the proceedings in court are at the earliest stages. He explained,
“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.”
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The lawsuit against the Ripple was filed to determine whether the Ripple blockchain can be classified as Security or not. The petetioner argues that Ripple is misleading its investor over its future especially from a financial point of view. They also argued that Ripple behaves more like a tradional stock than a cryptocurrency.
Jake believes that the lawsuit and involvement of courts would actually slow the proceedings. He explains,
“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.”
Jake also added that the slow proceedings and the complexities involved in the judicial system might prolong the verdict and there is no chance that the lawsuit would be resolved by the end of 2019. Here is how Jake puts it,
“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.”
Jake believes that public interest does not necessarily drive the proceedings or outcome of the lawsuit and looking at the court proceedings in cases of very important Bakkt and ETF, its quite evident that the final verdict may take a lot longer than many anticipate.
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