News View Non-AMP

Kraken Steps into Ripple’s Legal Battle: A Turn of Events in XRP’s Security Status

Published by
Elena R

In a striking development, the U.S.-based cryptocurrency exchange Kraken has intervened in the ongoing legal battle involving Ripple and the classification of XRP as a security. Kraken’s involvement follows a court order demanding U.S. exchanges to disclose private trading data of XRP transactions, including customer identities. Opting for user privacy over compliance, Kraken filed a motion to safeguard its clients’ sensitive information, underlining the exchange’s commitment to user trust and confidentiality.

Zakinov v. Ripple: The Core Issue

At the heart of the Zakinov v. Ripple lawsuit is the debate over XRP’s classification as a security or a currency. The plaintiff, Zakinov, alleges Ripple offered XRP as an unregistered security. Ripple, countering this claim, parallels XRP with cryptocurrencies like Bitcoin and Ethereum. Despite Ripple’s efforts to challenge the lawsuit, it remains a significant legal hurdle, with U.S. District Judge Phyllis J. Hamilton certifying the class action.

On July 13, Ripple triumphed in its lawsuit against the SEC, marking the first major victory for the crypto industry against the regulatory body. The court ruled that XRP is not a security, dismissing the SEC’s argument that crypto tokens are inherently securities. This landmark decision has set a precedent for the classification and regulation of digital tokens in the United States.

Kraken’s Involvement: A New Dimension

Kraken’s motion to intervene adds a new layer to Ripple’s ongoing legal challenges. While Ripple steadfastly denies any illegal issuance of securities, asserting XRP’s equivalence to established cryptocurrencies, Kraken’s entry focuses on the privacy implications of the court’s order. This move not only highlights the exchange’s dedication to client confidentiality but also places it at the center of a pivotal debate on privacy and regulatory compliance in the crypto space.

With Judge Analisa Torres‘s earlier ruling declaring XRP a non-security, the crypto world is keenly watching to see if Judge Hamilton will align with this decision. The outcome of these legal proceedings will not only impact Ripple and its users but also set a significant precedent for the broader cryptocurrency industry in the United States.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Recent Posts

Bitcoin ETFs Face $100M Outflows as Markets Plunge Following Trump’s Tariff Shock

On Thursday, U.S. spot Bitcoin ETFs faced $99.86 million in net outflows as the stock…

April 4, 2025

Ethereum (ETH) Price Prediction for April 2025

Ethereum (ETH/USD) price held a crucial support range between $1,755 and $1,800 as the United…

April 4, 2025

Why Crypto Is Down Today: Traders React to Tariffs, Eye Fed’s Next Move

The crypto market has hit a rough patch, slipping to $2.65 trillion after a 1.02%…

April 4, 2025

Crypto Awaits Fed Rate Cut Decision Amid Recession Fears

Crypto markets went on a rollercoaster ride this week as investors reacted to President Trump’s…

April 4, 2025

Zoomex Review: The New Crypto Exchange with Many User-Focused Features

Since launching in 2021, Zoomex has quickly made a name for itself as a crypto…

April 4, 2025

Bitcoin Price Prediction 2025- BTC Price May Revamp Bull Run Only After Reaching These Levels

The crypto markets were heavily consolidating ahead of Trump’s Liberation Day, where new tariffs were…

April 4, 2025