Cryptocurrency News Today: Ripple Labs wants the US to forget it’s being sued for selling Ripple (XRP) illegally
Ripple XRP Labs, the company behind the Ripple (XRP) Cryptocurrency, has formally requested a US federal court dismiss a class action lawsuit that alleges it illegally sold unregistered securities, Fortune reports.
A number of investors are claiming to have lost money after Ripple Labs convinced them to buy its Ripple (XRP) Cryptocurrency. The group has demanded that Ripple Labs pay damages and declare that Ripple (XRP) is security.
In response, Ripple Labs says that federal regulators have already concluded that Ripple (XRP) is a currency and a commodity, not a security — an assumption based on interpretation of previous regulator statements and not official rulings (in other words, a stretch).
As it turns out, US regulators have only said that two cryptocurrencies are sufficiently decentralized to be considered real currency, Bitcoin and Ethereum (not Ripple (XRP)).
In July, however, bagholders rejoiced when the UK financial watchdog loosely implied that Ripple (XRP) has “similar features” to Ethereum, choosing to believe this meant Ripple Labs’ tokens weren’t classified as securities (again, a stretch).
Here’s how Ripple Labs is fighting the lawsuit
According to Fortune, Ripple Labs