“For these thousands of putative class members, the notion that their XRP — that they purchased and may still own — is a ‘security’ comes as an unwanted surprise,” the defendants said. XRP trading would be more complicated if the coins were found to be securities, Ripple’s lawyers said — and sellers might even face individual liability for trading unregistered securities. It would also be harder, according to Ripple, for businesses to accept and make payments using XRP if the tokens are securities.
Several XRP purchasers underlined that point in a proposed amicus brief in the class action. The brief was filed by John Deaton of The Deaton Law Firm, who said he represents the interests of nearly 76,000 XRP holders who do not believe XRP is a security. (Deaton was granted leave to file an amicus brief for XRP holders in the SEC case.) Like Ripple’s lawyers, Deaton argued that the lead plaintiff cannot represent the interests of class members who “totally disagree” with his claims.
The judge overseeing the class action was not convinced.
Subscribe
‘Enforcement 40’ for 2020
Our Sponsors
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedIn