What Could Happen to XRP Holders If Ripple Losses To SEC ? – NewsTo
What Could Happen to XRP Holders If Ripple Losses To SEC ?

What Could Happen to XRP Holders If Ripple Losses To SEC ?



Ripples Victory Over US SEC Might Upgrade Howey Test For Crypto

Ripple vs SEC could leave XRP investors without any assets for years, according to a legal expert.

While the legal battle between Ripple and SEC goes on, XRP holders await the verdict eagerly while thinking about the potential consequences. Attorney John Deaton recently discussed the potential risks for investors if Ripple loses the class-action case against the watchdog on behalf of XRP holders.

The attorney states that if Ripple loses its lawsuit with the SEC, it might have major and lasting effects on those who own XRP. According to Deaton’s prediction, there would not be an instant financial fix. However, an extended process of appeals is anticipated, which could last from 2 to 5 years.

Implications And Consequences

Deaton says, “Ripple would probably appeal the ruling, leading to an extended period of legal limbo, if the SEC prevails.” 

Furthermore, even if XRP holders win a separate civil lawsuit against Ripple, their chances of receiving compensation would be in jeopardy. Should Ripple exhaust all appeals and eventually lose, the SEC would be authorized to collect the funds, which are approximate to be around $1.3 billion.

 What Could Happen to XRP Holders If Ripple Losses To SEC ?

The lawyer asserts that the amount of damages that owners of XRP could be entitled to obtain in the civil lawsuit against Ripple could be drastically reduced in the event that the SEC prevails. If the SEC recovers funds, XRP investors might potentially gain from a regulator’s compensation fund. This would be especially advantageous because the legal costs would be paid before the money was distributed, possibly leading to greater rewards for XRP holders.

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