Ripple CEO Brad Garlinghouse has criticized popular crypto news outlet CoinDesk for inaccurately reporting on a recent court decision related to XRP. Last week, California District Judge Phyllis J. Hamilton issued a decision in the securities class action against Ripple. The judge dismissed all securities law violation claims against Ripple but scheduled a jury trial for a state law claim regarding a 2017 statement made by Garlinghouse.
However, several media outlets misinterpreted the decision. They suggested that the California court ruling could alter XRP’s non-security status, previously determined by New York federal Judge Analisa Torres. Garlinghouse dismissed these misconceptions, emphasizing that XRP is not a security.
Related article: Ripple CEO Questions Market’s Reaction to XRP’s Unique Position
Garlinghouse Knocks CoinDesk For Spreading False Information
Despite Garlinghouse’s clarification, a recent CoinDesk report claimed that Judge Hamilton hinted XRP could be a security. Reacting to this, Garlinghouse faulted the report and criticized the reputable media outlet for the inaccurate information.
“The CA Judge did NOT call XRP a security,” Garlinghouse remarked. He emphasized that only XRP and Bitcoin have regulatory clarity in the U.S., classifying them as non-securities. Additionally, Garlinghouse noted how CoinDesk deleted a misleading tweet and corrected a headline about the topic, hinting at a pattern of inaccurate reporting.
Related article: Ripple CEO Clarifies Court Decision Amid Media Misinterpretations
Pro-XRP Lawyer Weighs In
Meanwhile, other pro-XRP industry commentators also criticized CoinDesk for its recent report about the cryptocurrency’s legal status. Attorney Bill Morgan slammed the media outlet for spreading misleading information. He stated that the California judge did not rule that XRP is, or could be, a security. He added that Judge Hamilton did not determine whether Ripple’s programmatic sales in the secondary market constitute investment contracts, a special type of security.
Conversely, Attorney Morgan emphasized that Judge Torres ruled that XRP is not a security and found Ripple’s programmatic sales of the coin to be non-investment contracts. He asserted that XRP currently has more legal clarity than Bitcoin. “Spreading this misinformation about the legal status of XRP almost one year after the Torres decision is just dishonest,” Morgan added.
Interestingly, the Community Notes feature on X has also debunked CoinDesk’s claims, citing remarks from Ripple CLO Stuart Alderoty.
