70k XRP Holders Will Join Class-Action Lawsuit Against SEC

70k XRP holders will join a class-action lawsuit against the SEC, because according to John Deaton the value of XRP has been impacted by the SEC’s decision to sue Ripple and its executives for violating securities law.

70k XRP Holders Will Join Class-Action Lawsuit

John Deaton’s class-action lawsuit against the U.S. Securities and Exchange Commission now includes over 70,000 owners of Ripple (XRP) (SEC).

70,100 as of now. @GaryGensler & @SECEnfDirector over 70K #XRPHolders from diverse backgrounds from all 50 states, every U.S. territory, and 141 Countries around the 🌍 have joined together to fight 🆚 your unlawful expansion of Howey.

You will lose the war. https://t.co/FHr5HkUxOh

— John E Deaton (211K Followers Beware Imposters) (@JohnEDeaton1) August 8, 2022

Deaton claims that the SEC’s choice to sue Ripple and its executives for violating securities legislation has devalued XRP, resulting in losses for those who invested in the asset.

He believes that the SEC lawsuit’s effect on XRP is sufficient justification for taking action against the commission.

“If the SEC really believes XRP is an unregistered security, why are they allowing the sale of the token during an ongoing lawsuit?”

Deaton stated in a tweet on August 8 that Stellar Lumens (XLM) ought to be included in the SEC’s definition of a security. He claimed that it has “the same founder” and that “XLM was born from XRP.”

Update on the Ripple v. SEC case

In the meantime, the SEC and Ripple case has gone on, and the commission has been charged with utilizing “delay tactics.”

After the SEC gave the court a one-line response in which it stated that it takes no position on Ripple’s motion to reopen fact discovery, cryptocurrency lawyer James Filan charged that the commission had wasted the court’s time.

Earlier, the judge had mandated that the commission authenticate a few videos that Ripple had provided, which contained statements made by SEC employees.

Ripple has asked for authorization to issue subpoenas to the websites hosting the videos. But the SEC misinterpreted this as a request to reopen discover, and that’s not really the case.

Filan stated:

“The SEC’s response is simply an abuse of the judicial process and a waste of the Court’s time, as evidenced by the fact that the SEC waited five days to file a one-sentence response in which the SEC then misconstrued Ripple’s original request.”

Ripple: A Brief History

Ripple is a network for real-time gross settlement, currency exchange, and remittances developed by the US-based technology company Ripple Labs Inc. Ripple, a distributed open-source protocol that was introduced in 2012, offers tokens that represent fiat currency, cryptocurrencies, commodities, or other types of value like frequent flyer miles or cell minutes.

With no chargebacks, Ripple claims to offer “secure, fast, and almost free worldwide financial transactions of any size.” The ledger is powered by the native cryptocurrency XRP.

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