The lawsuit against Ripple is ready to proceed. The plaintiff, Barry Sostack, has until the end of the day to file a reply to Ripple’s motion to drop the case. If Sostack makes no move to come into terms with the crypto firm, the class-action suit will jump into hearing next year.
If Ripple loses the argument, denoting the question of whether the Ripple’s XRP is a security that must be registered under the US law, it could sprout to be at risk of probable regulations by the regulators. But, as reported by the legal experts, the suit might not prove to be an answer to the dispute. Rebecca Rettig, a partner at FisherBroyles, said, “No one’s finding out whether XRP is security anytime soon, if ever, at least through this proceeding.”
Also, it is viewed that currently, Sostack holds a robust stand as Ripple’s plea did not carry much weight, whereas Sostack’s defense has been firm and skilled. However, Rettig mentioned that Ripple’s use of “statute of repose” – the argument of the defendant being too late to press charges, was an exciting move and has seen success previously. “The statute of repose argument was used a number of times successfully in cases bringing Securities Act claims relating to mortgage-backed securities six or seven years ago, which provides precedent the defendants could rely on.”
In the filing expected to occur on Monday, Sostack can take the case forward in several ways. Rettig mentions that he can attempt to make a “relation back” argument, which means they’re going to try to ‘relate back’ to the first-filed case declaring that Ripple violated securities laws. Paul Godfrey, a Florida-based attorney, said, “If I were Plaintiff’s attorneys, I would focus on the fact that while the inference could not be maintained in the past, with present technology and some well-aimed discovery, it would be quite easy to determine whether or not XRP was purchased by Plaintiffs from Defendants.”
Though it will be interesting what is stored for Monday, blockchain industry lawyers will also follow the case carefully. Moreover, officials also believe that Ripple will continue to be the target.