California Judge Phyllis Hamilton has allowed a civil securities lawsuit against Ripple Labs to proceed, focusing on CEO Brad Garlinghouse's alleged misleading statements about XRP's status in a 2017 interview. Garlinghouse claimed to be "very, very long" on XRP, contradicting his actions of selling millions of XRP that year, leading to allegations of misleading investors. Ripple argued that XRP doesn't meet the criteria of security under the Howey test, but Hamilton ruled that XRP could be classified as a security when sold to individual investors.

The case will now go to trial, with a jury deciding if Garlinghouse misled investors. This ruling has implications for the crypto industry, as it challenges the precedent set by Judge Analisa Torres' decision in Ripple's favor. The case highlights ongoing legal uncertainties surrounding crypto classification and executive statements.

In 2021, the court ruled that XRP was not a security, setting a landmark precedent for the crypto industry. However, the recent ruling by Judge Phyllis Hamilton has raised questions about the classification of XRP and other cryptocurrencies.

The case against Ripple Labs has been ongoing since 2018, with investors alleging that the company violated federal and state laws by failing to register XRP as a security. The plaintiffs claim that Ripple's actions led to significant losses for investors, and that the company's executives, including Garlinghouse, made misleading statements about XRP's status.

Ripple has argued that XRP is not a security and that the company has complied with all applicable laws and regulations. However, the court's recent ruling has raised questions about the company's actions and the classification of XRP.

The outcome of this case will have significant implications for the crypto industry, as it could set a precedent for the classification of other cryptocurrencies. If XRP is deemed a security, it could lead to increased regulation and oversight of the crypto market, potentially impacting the value of other cryptocurrencies.