Privacy in Focus as Crypto Exchange Kraken Enters Fray of Ripple’s XRP Securities Case

News | December 26, 2023 By:

Major US cryptocurrency exchange Kraken has entered the ongoing legal dispute between Ripple and investors over the status of XRP. Kraken filed a motion to intervene in the case in order to protect the privacy of its customers’ personal trading information.

The class action lawsuit was brought by plaintiff Bradley Zakinov, who alleges that Ripple issued XRP as an unregistered security. However, Ripple argues that XRP should be classified as a currency like Bitcoin rather than a security. Despite Ripple’s challenges, the case has continued as a class action certified by Judge Phyllis Hamilton.

In July, Ripple scored a key victory when a court dismissed the SEC’s claim that XRP is a security. The ruling established that XRP is not a security, setting an important precedent for digital token regulation in the US. However, the legal battle is still ongoing.

Kraken’s involvement adds a new dimension, as the exchange is fighting a court order that would require revealing customers’ identities and XRP transaction records. Prioritizing user privacy over compliance, Kraken aims to safeguard sensitive client data through its motion to intervene.

The case also has wider implications, as the ultimate classification of XRP could influence other cryptocurrencies. While Ripple denies any unlawful securities issuance, Kraken’s participation highlights the exchange’s commitment to privacy amid this pivotal debate around regulations for the crypto industry. All eyes are now on whether Judge Hamilton will agree with the earlier ruling that XRP is not a security. The outcome will impact both Ripple and the future of cryptocurrency in the US market.