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- As the Ripple vs SEC lawsuit progresses, crypto attorney John Deaton has revealed what to expect.
- In his analysis, he believes it is better for Ripple to win the case over the SEC.
As the legal proceedings between blockchain payments firm, Ripple Labs Inc, and the United States Securities and Exchange Commission (SEC) continue to unfold, a pro-XRP lawyer John E. Deaton has recently voiced concerns over the potential impact on XRP investors.
In a Twitter post, Deaton contends that the legal battle might result in years of uncertainty for XRP investors. Accordingly, Deaton provided further insights into the potential outcomes and timeline of the legal battle between Ripple and the SEC.
If Ripple loses to the SEC there won’t be any money collected for years and ONLY if Ripple loses on appeal. If the Supreme Court takes it on appeal (which I believe they will if Congress hasn’t acted by then), I believe Ripple hands down wins with this Supreme Court. If the SEC… https://t.co/0xHw266YXf
— John E Deaton (@JohnEDeaton1) July 6, 2023
According to Deaton, if Ripple were to lose to the SEC at the Appeals Court, it would take years before any money is collected. Deaton believes that if the case reaches the Supreme Court, which he expects it to if Congress hasn’t acted by then, Ripple would emerge as the winner.
On the other hand, Deaton suggests that if the SEC were to win the case, Ripple would appeal, and the current situation would continue for the next 2-5 years. He highlighted that this lengthy legal process would result in no money being available to XRP investors joining the recent Class Action against the firm for years, if ever.
Assuming Ripple loses all the appeals after five years, Deaton believes that the SEC would then collect the recovery fund, approximately $1.3 billion, rather than the civil plaintiffs. He hinted that the SEC would likely offer a payback fund for XRP holders to sell their XRP, as was the case with Veritaseum.
Deaton points out that if the SEC fund were to provide recovery, XRP holders would receive more money since the civil case lawyers would receive 25-35 percent of the recovery for attorney fees before deducting the costs of the case from the fund.
Accordingly, Deaton suggests that it would be preferable for the SEC to lose because the SEC winning could significantly reduce the damages in the civil case.
Is Joining the 75K XRP Holder’s List A Positive Step?
In addition, the crypto lawyer highlighted that being on the 75,000 XRP holder’s list which he is in charge of is indeed a beneficial position for the coin holders. Notably, the list consists of early XRP holders who have been named as potential “intervenors” in the case.
Deaton clarifies that joining the list does not waive any rights or claims. Instead, being part of the list increases the likelihood of being contacted if there is any monetary recovery for XRP holders from either the civil case or the SEC case.
By joining this list, individuals are indicating their belief that XRP is not a security and that they should have the opportunity to seek reimbursement or other relief if the SEC’s case against Ripple affects the value of XRP.
Furthermore, Deaton advises disregarding those who argue that joining the 75K list and asserting that XRP is not a security would be detrimental if there were a monetary recovery for XRP holders in the future. He suggests that these claims should be ignored, implying that being part of the list and holding the belief that XRP is not a security can potentially be advantageous in seeking reimbursement or relief.
