The current class-action lawsuit against Ripple Labs, its CEO Brad Garlinghouse, and subsidiary XRP II, may be less of a concern for the company than anticipated, according to XRP-friendly lawyer John E. Deaton.
In a recent tweet, Deaton suggested that the plaintiffs’ attorneys should be hoping for a Ripple victory in the ongoing SEC case, as a comprehensive SEC victory could lead to the establishment of a fund to pay XRP holders, consequently undermining the class-action lawsuit.
Deaton further explained that if the SEC were to triumph entirely, it would be the agency collecting the money, not the plaintiffs in the class-action suit.
The crux of both the SEC and class action cases rests on the determination of whether XRP, the Ripple-affiliated cryptocurrency, is considered a security. This crucial question has been at the center of Ripple's legal challenges in recent years.
Alex DovbnyaRipple Labs currently faces both the SEC lawsuit and the certified class-action, and Deaton's comments suggest the former may hold more significant consequences for the company.
A Ripple victory in the SEC case could not only transform the landscape for the class-action but also have wide-ranging effects on the categorization and regulation of cryptocurrencies.
Yuri Molchan
Vladislav Sopov
Dan Burgin