Blockchain News

Pro-XRP Lawyer Speculates on Ripple-SEC Legal Battle and Potential Impact on XRP Holders

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has garnered attention from pro-XRP lawyer John Deaton. Deaton recently shared his perspective on the potential outcomes of the case and their implications for XRP holders.

According to Deaton, if Ripple loses to the SEC, the collection of funds may face significant delays. Only if Ripple decides to appeal the decision and subsequently loses on appeal would any monetary recovery become possible, potentially taking several years. However, Deaton believes that if the Supreme Court decides to take on the appeal, which he expects if Congress fails to act by then, Ripple would likely emerge victorious.

Deaton draws parallels between the Ripple case and the Veritaseum case, both involving allegations of unregistered securities offerings in the cryptocurrency industry. In the Veritaseum case, the SEC accused Veritaseum and its founder, Reginald Middleton, of conducting an unregistered initial coin offering (ICO) that raised approximately $14.8 million. The SEC established a Fair Fund after concluding the Veritaseum case, enabling affected investors to seek refunds for their investments.

This development could serve as a precedent for how the SEC might handle the Ripple case if it successfully demonstrates that XRP constitutes a security. Similarly, the SEC may establish a Fair Fund to compensate investors who purchased XRP during the alleged unregistered securities offering.

Deaton also stresses the importance of being on the “75K list,” a compilation of over 75,000 XRP holders named as potential “intervenors.” Being on this list allows XRP holders to seek potential reimbursement or relief if the SEC’s case against Ripple results in a judgment or settlement that impacts the value of XRP. Individuals joining the list indicate their belief that XRP is not a security and express their desire to participate in relevant proceedings.

Addressing critics who argue against joining the 75K list and claiming that arguing XRP isn’t security may be detrimental, Deaton advises ignoring such opinions. He believes that if there is ever a monetary recovery for XRP holders, being on the list would likely lead to the best option.

In conclusion, Deaton provides insights into the Ripple-SEC legal battle and its potential consequences for XRP holders. He suggests that the civil case may yield little results, with the SEC having the most excellent chance of collecting funds and offering the most favorable outcome. Additionally, Deaton speculates that if Ripple loses and Congress addresses the regulatory challenges during the appeals process, the entire issue may ultimately dissipate.


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