Ripple Vs SEC: Ripple Lawyer Suggests Unexpected Twist for Class Action Lawsuit

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Ripple Labs might have just found a surprising loophole in their battle against the U.S. Securities and Exchange Commission (SEC) that could turn the tables on the ongoing class-action lawsuit. 

In a tweet that raised eyebrows, Deaton hinted that the lawyers representing the class-action plaintiffs might secretly hope for Ripple’s success in the SEC case. How? Well, if the SEC wins big, they would be the ones pocketing the fines and penalties, not the plaintiffs. This game-changer could lead to a compensation fund for XRP holders, undermining the class-action lawsuit entirely.

Notably, the crux of both the SEC and class-action cases revolves around whether XRP should be considered a security. This pivotal question has been at the center of Ripple’s legal battles in recent years, making this twist all the more captivating.

On the other hand, Deaton also clarified that the certified classes in the class-action suit only apply to U.S. investors, alleviating concerns for international XRP holders. Regulatory bodies in the UK, Japan, Singapore, and the UAE have already declared that XRP is not a security within their jurisdictions, unaffected by the class-action certification.

With Ripple fighting on two fronts—the SEC lawsuit and the certified class-action—Deaton’s bombshell suggests that the outcome of the SEC case could be the real game-changer. A Ripple victory could not only shake up the ongoing class-action lawsuit but also have far-reaching implications for how cryptocurrencies are categorized and regulated.