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.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Dan Burgin
Vladislav Sopov