XRP in the Crosshairs After Ripple Ruling, Says Compound General Counsel Jake Chervinsky

XRP is on a firm trajectory toward a federal ruling on whether it is a security, according to Jake Chervinsky, general counsel at crypto lending platform Compound.

A judge green-lit a much-publicized unregistered-security lawsuit against Ripple earlier this week despite the company’s attempts to get the case dismissed. Chervinsky says the ruling is a clear setback for Ripple.

“There’s a lot going on here, but overall it’s a victory for the plaintiffs. The securities claims survive. XRP stays in the crosshairs.”

Yes, and not just a probability — the major remaining issue is whether XRP was a security during the relevant time period.

— Jake Chervinsky (@jchervinsky) February 26, 2020

Ripple says XRP exists independently of the San Francisco company and is not a security because investors in the digital asset are not shareholders of Ripple in any way. Ripple owns more than half of the total supply of XRP and has routinely sold portions…