Ripple vs SEC: No Money for Years, XRP Holders Lose if SEC Wins, Says John Deaton

John Deaton, a pro-XRP advocate, recently made some statement In regards to the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC). Deaton believes that if Ripple loses to the SEC, no money can be collected for years, and only if Ripple loses on appeal.

However, he also believes that Ripple will win if the Supreme Court considers the appeal, as he believes if Congress does not act by then.

Ripple’s Legal Troubles Could Last for Years

Deaton is of the view that if the SEC wins, Ripple will appeal, and the current status quo will continue for another 2-5 years. Deaton insisted:

Assuming the SEC wins and the lawyers in the civil case win because the judges in California follow Judge Torres’ decision, Ripple will appeal that case as well, and will not get any money for years, if ever. .

In such a scenario, if Ripple loses all appeals, the money will be collected by the SEC, not the civil plaintiffs. The SEC will then offer the Payback Fund to XRP holders to sell their XRP, as is the case with Veritasium.

The Veritasium and the ongoing Ripple case are similar in that they both involve allegations of unregistered securities offerings in the cryptocurrency industry.

In the Veritasium case, the SEC alleged that Veritasium and its founder, Reginald Middleton, conducted an unregistered initial coin offering (ICO) that raised approximately $14.8 million. Similarly, in the Ripple case, the SEC alleged that Ripple made an unregistered securities offering by selling XRP to investors.

After the Veritasium case ended, the SEC established a Fair Fund to distribute money collected from defendants to investors who had suffered losses from unregistered securities offerings. Fair Fund enabled investors participating in the Veritasium ICO to apply for the return of their investments.

This development could serve as a precedent for how the SEC could proceed with the Ripple case if it successfully proves that XRP constitutes a security. In such a scenario, the SEC could set up a Fair Fund to compensate investors who bought XRP during the unregistered securities offering.

XRP holders can continue to believe that their assets are not securities

Furthermore, Deaton argued that being on the “75K list” – a list of more than 75,000 XRP holders designated as potential “interferers” – is a good thing because a vast presumed class of XRP holders can be easily identified. .

Adding to the class list they put out, no one waived anything, and if there was any money for XRP holders from the civil case or SEC case, they would likely be contacted because they have a “75K” list. Is.

The purpose of the listing is to allow these XRP holders to potentially receive reimbursement or other relief if there is a ruling or settlement in the SEC case against Ripple that affects the value of XRP. By joining the list, these individuals are indicating that they believe that XRP is not a security and that they should be allowed to participate in any proceedings related to the matter.

Additionally, Deaton advises ignoring those who claim that joining the 75K list and arguing that XRP is not a security is a bad thing if one day there is a monetary recovery for XRP holders. Is.

Overall, Deaton believes nothing can come of the civil case. If the SEC wins, it will collect the most money and offer the best option, “paradoxically.”

Furthermore, if Ripple loses and Congress fixes this regulatory mess during the 5 years of appeals, it will all “go away anyway,” according to a pro-XRP lawyer.

Featured Image from Unsplash, Chart from Tradingview.com