After the California Court ruling, it could be seen that Ripple Labs is going to face more lawsuits in future. Not only Ripple Labs, but there will also be complications for most of the entities in the crypto market. There might be a class action suit against them.
The U.S. Security and Exchange Commission (SEC) has earlier charged ICO because of its engagement in illegal security offerings. These charges were defended by a lot of cryptocurrency companies.
Although, the case against Ripple Labs could not be taken lightly and they might face more problems.
The California Court has directed that the laws against unfair or deceptive acts or practices would be applied if the cryptocurrencies like XRP failed to prove as securities.
Now, it seems that cryptocurrency companies which do not involve securities are going to face a lot of difficulties as it is not possible to escape from the laws of the United States.
Well, there are some exceptional cases where an out-of-court settlement has been done with some fines. However, these fines will get very expensive if unfair or deceptive acts or practices laws will be applied to any case.
The cases that come under such unfair practices could be taken out by any individual also against any particular company.
These lawsuits could be filed against a company if it is charging any hidden fees, providing fake news or anything else like that.
There are already a lot of companies that are booked under such unfair practices by the California court. More cases like Ripple Labs in this industry is going to create a lot of disturbance in the cryptocurrency market. Now, there is no chance of avoiding securities otherwise there will be dreadful consequences.
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