While Ripple (XRP) must wait for a verdict in its lawsuit against the SEC, momentum is building on other legal fronts. Crypto lawyer John Deaton is speaking out in a 2020 class action lawsuit.
Those who regularly follow Ripple (XRP) know that the U.S. Securities and Exchange Commission’s lawsuit against Ripple is admittedly the most significant legal battle to date. But even before that, disappointed XRP investors had repeatedly filed lawsuits against Ripple, such as in early 2020 via a class action lawsuit in California. This lawsuit paused, but now the litigants seem to be preparing for a continuation. In the process, Ripple is getting assistance from prominent crypto lawyer John Deaton, whose motion for assignment as so-called “amicus curiae” was favorably decided.
Deaton already represents private XRP investors in the SEC v. Ripple case, opposing regulatory intervention by the agency. The SEC classifies XRP as a “security” and seeks punitive and compensatory damages for the alleged illegal sale of Ripple’s cryptocurrency. The question of XRP’s legal status is also a linchpin in the class action lawsuit in California. As “amicus curiae,” Deaton is now entitled to present the interests of his clients, even if they have not previously been involved in the proceedings.
Via Twitter, Deaton is disseminating independent counsel James Filan’s assessment that at least 75,000 XRP investors specifically do not want to join the claims for compensation raised by the class action. In addition, as in the LBRY vs. SEC case, Deaton wants to have sales of XRP on secondary markets such as crypto exchanges declared legal. Ripple should welcome this strategy from Deaton, after all it benefits XRP.
Bottom line: Ripple and XRP face legal test of nerves.
As far as is known, lawsuits other than the SEC’s against Ripple and XRP will not be prioritized for the time being because the courts want to take into account the overriding judgment from the mammoth trial expected in the first half of 2023. There, Deaton had succeeded in shaking the SEC’s line, according to observers, by demonstrating that many investors feel disregarded by the SEC and insist on free trading of XRP. Deaton’s important distinction between secondary markets and direct sales of LBRY has also been applauded in the crypto scene because it could be applied to XRP. But to note in parallel: the legal nerve test for Ripple around XRP continues and an acquittal is by no means guaranteed.
Leave a Reply