Lawyer John E Deaton, who represents thousands of XRP holders in a class action lawsuit against the U.S. Securities and Exchange Commission (SEC), shared his views on what could happen if Ripple, the company behind XRP, loses its legal battle against the regulator.
“Even If Ripple Loses The Case, It Will Take Years To Get A Response From The Supreme Court”
In a series of tweets, Deaton outlined possible scenarios and implications for XRP holders if Ripple is found to be violating securities laws by selling XRP to the public.
He argued that even if Ripple lost, it would not be an immediate result for XRP holders as Ripple would likely appeal the decision and drag the case on for years.
Deaton also expressed confidence that Ripple will win the case if it reaches the Supreme Court, and stated that he believes it will happen if Congress does not intervene and clarify the regulatory status of cryptocurrencies.
He argued that the current Supreme Court would support his argument that XRP is not a security and that the actions of the SEC were arbitrary and unfair.
Deaton also touched upon the civil lawsuit that some XRP holders have filed against Ripple, seeking compensation for their losses. Deaton said that if the SEC wins, the lawsuit will weaken because the SEC will collect money from Ripple and then offer a fund to XRP holders to sell their XRP back to the SEC or Ripple.
He stated that this option would be more favorable for XRP holders than litigation, where lawyers would receive a large share of the compensation.
Deaton also defended his decision to create a list of 75,000 XRP holders participating in its class action lawsuit against the SEC. He said that joining the list does not waive any rights or claims for XRP holders and actually helps them identify themselves as potential beneficiaries of any future recovery.
He criticized critics who claimed it was a bad move to join the list and argue that XRP is not a security, calling them “morons” and “idiots”.
Deaton concluded by saying that he doubts the lawsuit will lead to anything, and that if Congress fixes the regulatory mess over the years of appeal, it will all be over anyway. He urged XRP holders to remain optimistic and not panic over the outcome of the SEC lawsuit.
*Not investment advice.