Ripple Labs, the CEO Brad Garlinghouse, and its subsidiary XRP II are currently facing a class-action lawsuit. However, there is a possibility that a victory for Ripple in the ongoing Securities and Exchange Commission (SEC) case could undermine the class-action lawsuit. John E. Deaton, a lawyer known for his support of Ripple, believes that if Ripple wins against the SEC, it could lead to the establishment of a fund to pay XRP holders, which would weaken the class-action lawsuit. Conversely, if the SEC emerges as the winner, the agency would collect the money, not the plaintiffs in the class-action suit.
There have been concerns among international XRP holders regarding the certification of the class-action lawsuit. However, it is important to note that the certification only applies to US investors and does not affect XRP holders in other jurisdictions. Regulatory authorities in countries like the UK, Japan, Singapore, and the UAE have declared that XRP is not a security. Therefore, the certification does not have any impact on XRP holders in these countries.
While Ripple Labs is currently facing both the SEC lawsuit and the class-action lawsuit, the outcome of the SEC case may have more significant consequences for the company. If Ripple wins against the SEC, it could potentially undermine the class-action lawsuit and have wide-ranging effects on the categorization and regulation of cryptocurrencies.
The determination of whether XRP is considered a security is central to both the SEC and class-action cases. This question has been the core of Ripple’s legal challenges in recent years. While the certification of the class-action lawsuit is an important development, the outcome of the SEC case holds even greater significance for Ripple. A favorable ruling in the SEC case could potentially undermine the class-action lawsuit and bring about changes in the treatment of cryptocurrencies.
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As the legal proceedings continue, investors and stakeholders will closely monitor the outcome and its potential impact on XRP’s price and the broader cryptocurrency market. The victory or defeat of Ripple in the SEC case could have ripple effects (no pun intended) on the industry as a whole.
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In conclusion, the certification of the class-action lawsuit against Ripple is a noteworthy development. However, it is the outcome of the SEC case that carries more significant implications for the company. A victory for Ripple in the SEC case could potentially undermine the class-action lawsuit and have far-reaching effects on the categorization and regulation of cryptocurrencies. As legal proceedings continue, investors and stakeholders will closely monitor the outcome and its potential impact on XRP’s price and the broader cryptocurrency market.
