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  • Writer's pictureSarah Dixon

John Deaton says XRP holders will lose

John Deaton says XRP holders will lose
John Deaton says XRP holders will lose

Pro-XRP lawyer John Deaton has shared his thoughts on the ongoing legal dispute between Ripple and the SEC. According to Deaton, if Ripple loses the case, it may take years to collect the money owed, and only if Ripple loses on appeal. However, he is optimistic that if the Supreme Court takes on the appeal, which he believes they will if Congress has not acted by then, Ripple will emerge victorious.

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John Deaton says XRP holders will lose. Ripple Legal Troubles Could Linger For Years

According to Deaton, if the SEC wins the case against Ripple, Ripple will appeal, and the current situation will remain unchanged for the next 2-5 years. In the event that Ripple loses all appeals, the SEC would collect the money, and not the civil plaintiffs. The SEC would then establish a payback fund for XRP holders to sell their XRP. The Veritaseum and Ripple cases are similar in that they both involve allegations of unregistered securities offerings in the cryptocurrency industry. After the Veritaseum case was concluded, the SEC created a Fair Fund to distribute the funds collected from the defendants to investors harmed by the unregistered securities offering. This development could serve as a precedent for how the SEC may proceed with the Ripple case if it successfully proves that XRP constitutes a security. In such a scenario, the SEC may similarly establish a Fair Fund to compensate investors who purchased XRP during the unregistered securities offering. John Deaton says XRP holders will lose.

XRP Holders Can Continue To Believe Their Assets Are Not Securities

Deaton argues that being on the "75K list" is a good thing for XRP holders as it helps identify a large putative class of XRP holders. This list allows XRP holders to potentially seek reimbursement or other relief if the SEC's case against Ripple results in a judgment or settlement that impacts the value of XRP. By joining the list, individuals indicate that they believe XRP is not a security and should be allowed to participate in any proceedings related to the case.

Deaton advises ignoring those who claim joining the list and arguing XRP isn't a security is a bad thing. He believes that the civil case may not lead to anything and that if the SEC wins, it would collect the most money and offer the best option, "ironically." Additionally, if Ripple loses and Congress fixes this regulatory mess during the 5 years of appeals, it all "goes away anyway," according to the pro-XRP lawyer.

Joining the class list doesn't require waiving anything, and if there were ever any money for XRP holders from the civil case or the SEC case, Deaton would likely be contacted because he has the list of the "75K."

XRP is following the market downtrend on the 1-day chart. Source: XRPUSDT on
XRP is following the market downtrend on the 1-day chart. Source: XRPUSDT on

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


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