Ripple CEO Brad Garlinghouse has criticized popular cryptocurrency news outlet CoinDesk for inaccurately reporting a recent court ruling regarding XRP.
California District Court Judge Phyllis J. Hamilton issued Last week, a highly anticipated ruling was handed down in a securities class action lawsuit against Ripple.
In his ruling, the judge dismissed all securities charges against Ripple, but scheduled a jury trial on state law claims related to statements Garlinghouse made in 2017.
As a result, some media outlets misinterpreted the ruling, suggesting that the California court’s ruling could change XRP’s non-security status, as determined by New York federal judge Analisa Torres. As previously reported, Garlinghouse denied these misunderstandings, emphasizing that XRP itself is not a security.
Garlinghouse accuses CoinDesk of spreading misinformation about XRP
Despite this explanation, a recent CoinDesk report suggested that Justice Hamilton suggested that XRP could be a security, with Ripple’s CEO responding by calling the claim false and criticizing reputable media for inaccurate reporting.
“California judge rules out calling XRP a security” Garlinghouse pointed out.
He emphasized that only XRP and Bitcoin have clear regulations in the U.S., and that these assets are classified as non-securities assets. Garlinghouse further explained how CoinDesk removed a misleading tweet and corrected a headline on the topic, suggesting a pattern of inaccurate reporting.
Coindesk – This is embarrassing. A California judge did not call XRP a security. In fact, only XRP and BTC are clarified in the US.
We’ve already had to remove one misleading tweet (after correcting the misleading headline) on this topic.
The industry needs CoinDesk to improve.
— Brad Garlinghouse (@bgarlinghouse) June 28, 2024
Pro-XRP lawyers speak out
Meanwhile, pro-XRP industry commentators also criticized CoinDesk following its recent report on the cryptocurrency’s legal status.
Attorney Bill Morgan accused the media of spreading misleading information about XRP’s legal status, saying that a California judge had not ruled that XRP is or could become a security.
He added that in his summary judgment, Judge Hamilton did not determine whether Ripple’s secondary market programmatic sales constituted investment contracts, a special type of security.
Conversely, Morgan said Judge Torres determined that XRP is not a security and that Ripple’s programmatic sales of the coin were non-investment contracts. Additionally, he argued that XRP itself is currently in greater legal clarity than Bitcoin.
“Nearly a year after the Torres decision, it is disingenuous to spread misinformation about XRP’s legal status.” Interestingly, X’s community notes feature also denied CoinDesk’s claims, citing Ripple’s chief financial officer, Stuart Aldelotti.
That’s really rubbish. Coindesk is a joke. Judge Torres clearly ruled that XRP itself is not a security.
Judge Hamilton in California did not determine that XRP is or could be a security. He simply did not determine, based on summary judgment, that Ripple sold XRP programmatically. https://t.co/k6cTDPXsmm pic.twitter.com/5rJCf2WxCJ
— Bill Morgan (@Belisarius2020) June 28, 2024
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