Ripple CEO Brad Garlinghouse slammed CoinDesk, a well-known source of cryptocurrency news, for inaccurately reporting a recent court decision involving XRP.
Do you remember last week when California District Judge Phyllis J. Hamilton handed down the much-awaited ruling in the securities class action against Ripple?
The judge ruled Ripple was not liable for any violations of securities laws. But he set up a jury trial for the state lawsuit based on Garlinghouse 2017 comments.
As a result, many media outlets misinterpreted the case, claiming that the California court verdict might change XRP’s non-security status, as ruled by New York federal Judge Analisa Torres. As previously noted, Garlinghouse refuted these misconceptions, underscoring that XRP is not a security.
Garlinghouse criticizes CoinDesk for spreading false information on XRP
Despite the explanation, a recent CoinDesk report suggests Judge Hamilton suggested XRP may be a security. In response, the Ripple CEO disputed the claim and slammed the renowned media site for misleading reporting.
“The CA Judge did not call XRP a security,” Garlinghouse commented.
He emphasized that as it were XRP and Bitcoin have administrative clarity in the U.S., which classifies the resources as non-securities. Garlinghouse related how CoinDesk erased a deceiving tweet and redressed a feature around the theme, implying at a design of wrong reporting.
A pro-XRP lawyer also gave his point of view
Meanwhile, several pro-XRP industry experts slammed CoinDesk for its recent analysis of the legal status of the cryptocurrency.
Lawyer Bill Morgan criticized media outlets for spreading misleading information about the legal status of XRP. He said the California judge did not rule that XRP is or can be a security.
He further added that Judge Hamilton did not make a ruling on whether Ripple’s programmed secondary market transactions qualified as investment contracts, which are a type of security.
Attorney Morgan claimed that Judge Torres has determined that XRP is not a security and that Ripple’s programmed coin sales are not investment contracts. In addition, he claimed that XRP now has a clearer legal framework than Bitcoin.
Morgan says, “It is dishonest to spread this misinformation about XRP’s legal status nearly a year after the Torres.” Interestingly, the Community Notes feature on X also contradicts CoinDesk’s claims, citing comments from Ripple CLO Stuart Alderoty.
