Why Ripple (XRP) Must Quickly Put Lawsuit to Rest

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On Thursday, Ryan Coffey filed a lawsuit against Ripple (XRP), the San Francisco based technology firm, for selling what he regarded as security.  The lawsuit is being considered at San Francisco County Superior Court, which is within the jurisdiction of operation of the tech firm as filed by Coffey's attorney, James Taylor Copeland. The lawsuit targets Ripple (XRP) and its CEO Brandley Garlinghouse, for selling unregistered securities, even though the amount of damages he seeks is not made public. 

The Effects of the lawsuit on XRP are:

1) Distracting Ripple (XRP) team

2) Delaying SEC

It will distract the Ripple team

The Ripple (XRP) team that has been working hard to see that its Ripplenet project gains more ground as an Oman bank earlier this month, just entered an agreement with the blockchain that could see it use the Rippllenet project in fulfilling their vision,"2020 Transformatio". Because the company and its CEO are named as defendants in the suit, some of Ripple (XRP) team members might be required to appear in court. This could prove to be a strong distraction to the team.

It could delay the decision of SEC on whether to classify it as security

As a general rule, Federal government agencies are not permitted to make statements on issues that are in court so that it could not be said that they influenced the court decision with their statement. The SEC has not reached a conclusion in its decision on whether XRP is a security or not, and this lawsuit could delay its decision for the duration of the lawsuit. This is not good for the Ripple (XRP) team that had been trying to see that it gets listed on exchanges with user base above 13,000, such as Coinbase and Gemini.

The Ripple (XRP) team should make prudent effort to negotiate with Coffey and his attorney for an out of court settlement of the case so that XRP can continue important progression.

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive Content

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