Has Ripple Just Discovered a Massive Legal Loophole Against the SEC? Find Out Here.


The post Has Ripple Just Discovered a Massive Legal Loophole Against the SEC? Find Out Here. appeared first on Coinpedia Fintech News

Ripple Labs, in a surprising turn of events, has stumbled upon a potential loophole in its ongoing dispute with the U.S. Securities and Exchange Commission (SEC). This discovery could have significant implications for the outcome of the ongoing class-action lawsuit.

What is it and how could this change the trajectory? Read on.

Deaton Reveals an Intriguing Motive

In a tweet that raised eyebrows, John Deaton hinted that the lawyers representing the class-action plaintiffs might secretly hope for Ripple’s success in the SEC case.

Read More: Ripple vs SEC: Why is the Summary Judgement Stretching On? Deaton Provides Insights

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.

The Burning Question

At the core of both the SEC case and the class-action lawsuits is the vital question of whether XRP should be considered a security.

This issue has been the focal point of Ripple’s legal battles in recent years, adding an extra layer of intrigue to this unfolding situation.

Relief for XRP Holders

Deaton clarified that the certified classes involved in the class-action suit apply solely to U.S. investors. This clarification should provide relief for international XRP holders, as regulatory bodies in the United Kingdom, Japan, Singapore, and the United Arab Emirates have already declared that XRP is not a security within their respective jurisdictions. Consequently, these international XRP holders remain unaffected by the certification of the class-action lawsuit.

As Ripple fights on two fronts—the SEC lawsuit and the certified class-action—Deaton’s bombshell revelation suggests that the outcome of the SEC case could be the ultimate game-changer. The stakes have never been higher.

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