Ripple CEO Brad Garlinghouse has criticized popular crypto news outlet CoinDesk for inaccurately reporting a recent court decision relating to XRP. The California District Judge Phyllis J. Hamilton issued a decision in the securities class action against Ripple, dismissing all securities law violation claims against the company. However, she scheduled a jury trial for a state law claim regarding a 2017 statement made by Garlinghouse. Despite the judge’s ruling, some media outlets misinterpreted the decision, suggesting that XRP’s non-security status could be altered. Garlinghouse clarified that XRP is not considered a security, and emphasized that only XRP and Bitcoin have regulatory clarity in the U.S.
After the clarification by Garlinghouse, a recent report by CoinDesk claimed that Judge Hamilton hinted XRP could be a security. The Ripple CEO criticized CoinDesk for spreading false information, stating that the California judge did not call XRP a security. He pointed out that CoinDesk had to delete a misleading tweet and correct a headline on the topic, highlighting a pattern of inaccurate reporting by the reputable media outlet. Additionally, pro-XRP industry commentators like Attorney Bill Morgan also criticized CoinDesk for spreading misleading information about XRP’s legal status. Morgan argued that Judge Torres held that XRP is not a security and found Ripple’s programmatic sales of the coin to be non-investment contracts, providing more legal clarity than Bitcoin.
Attorney Bill Morgan noted that Judge Hamilton did not determine whether Ripple’s programmatic sales in the secondary market constitute investment contracts, a special type of security. He criticized CoinDesk for spreading misinformation about the legal status of XRP, despite the clarity provided by Judge Torres’ decision. The Community Notes feature on X also debunked CoinDesk’s claims, citing remarks from Ripple CLO Stuart Alderoty. The continued misinformation surrounding XRP’s legal status, more than a year after Judge Torres’ decision, reflects a dishonest portrayal of the cryptocurrency’s legal standing.
Overall, the criticisms from Ripple CEO Brad Garlinghouse and pro-XRP industry commentators highlight the importance of accurate reporting in the cryptocurrency industry. With regulatory clarity being crucial for investors and market participants, spreading misinformation about the legal status of cryptocurrencies like XRP can have significant repercussions. Garlinghouse’s emphasis on XRP not being classified as a security, along with the clarification from Attorney Bill Morgan, underscores the need for media outlets like CoinDesk to provide accurate and reliable information to their audience. As the crypto industry continues to evolve, maintaining transparency and clarity in reporting is essential for building trust and credibility within the community.
