What Could Happen if SEC Wins Lawsuit Against Ripple and XRP?
In the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs over the status of XRP, lawyer John E. Deaton has provided insights into the likely outcome if the SEC emerges victorious. Here are the key points:
- If the SEC wins, Ripple will appeal, and the situation will remain unchanged for the next 2-5 years.
- If Ripple loses all appeals, the SEC would collect the money, not the civil plaintiffs.
- The SEC would then offer a fund for XRP holders to sell their tokens.
- If the SEC wins, it would reduce the damages for the civil case.
- The lawyers in the civil case would receive 25-35% of any recovery for attorney fees.
Hot Take: While being on the list of 75K XRP holders created by Deaton could potentially be beneficial, the attorney doubts that the civil case will lead to any significant outcome. However, if Ripple loses and Congress addresses the regulatory issues during the appeals process, the situation could change.
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