Ripple vs. SEC: Legal expert warns that adverse ruling in lawsuit would be catastrophic for the crypto industry
A legal expert warns that an unfavorable decision in the lawsuit from the US Securities and Exchange Commission (SEC) against Ripple would be bad for crypto.
Deaton Law Firm Managing Partner John E. Deaton sier The outcome of the SEC lawsuit, which claims that XRP is a security, will determine whether almost all other existing altcoins are securities.
“In regards to [U.S.] Congress is not going to provide regulatory clarity (especially in an election year after the Supreme Court overthrows Roe v. Wade), the ruling by Judge Analisa Torres in the Southern District of New York will determine whether the SEC has jurisdiction over existing altcoins that have traded for years.
The SEC NOT only claims that the way Ripple offers and sells XRP is illegal, but that ALL XRPs are unregistered securities. It is the functional equivalent of claiming that the oranges in the SEC v. WJ Howey Co. were securities. If successful, almost every other altcoin is a security. “
The SEC v. WJ Howey Co. case is credited with the Howey test, which is the standard used to determine what is or is not a security under U.S. law.
Consequently, in response to a lawsuit filed this week against Solana (SOL) developer Solana Labs, which claims that the ninth largest crypto asset component is a security, Deaton says there will be more such lawsuits against crypto organizations if XRP is sentenced to be a Safety. Safety.
“Only the beginning if XRP is considered a security. Dozens if not hundreds of class actions are likely to be brought – but not just against the stock exchanges (Coinbase was sued already) but [the] allegedly the promoter of an altcoin. Ripple was already sued over XRP. “
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