“Tactical brilliance” was the way a lawyer commented on the attempt to bring Ripple’s lawsuit to the decision of whether or not XRP is to be considered as a security token in the US federal court.
The records confirm the request to move the case to the federal level. If the request is accepted, this could be the case that closes the debate on the legal status of XRP as security in the United States.
The law.com legal news website reports that Peter Morrison has pointed out in his request that the case “meets all the prerequisites” for acceptance.
The case in question concerns allegations by investors against Ripple that it is a security not registered with the regulatory bodies.
Initially, 4 cases were brought forward by 4 investors who lost money after investing in XRP, which have now been merged into one.
Is Ripple a security?
The debate has been going on for a long time about considering Ripple as a security. Many people believe that the amount of central control exercised over the network is excessive to say that XRP is not a security.
Having said that, it is difficult to predict what the decision will be on this cryptocurrency and its investors. What is certain is that investors could lose a good deal of money if the court were to consider XRP to be an unregistered security.
The lawyer who complimented Ripple’s attorneys for requesting to move the case to a federal court explained:
“I can’t speak to their odds of winning since the case is still so young & I don’t know all the facts, but it’s fair to say Ripple’s lawyers think they have better odds of winning in federal court than in state court (or else they wouldn’t be trying so hard to remove the case)“.