ššš #Rippleš° vs. #SEC Ends: Can Individuals Pursue a Class-Action #lawsuit ? John Deaton Calls It āChallengingā
Rippleās lengthy legal battle with the SEC has finally concluded, marking a significant win for the crypto industry. The case, which revolved around whether $XRP should be classified as a security, ended with Ripple agreeing to a reduced fine of $25 millionāfar lower than the original $2 billion. While Ripple can continue its global operations, it faces restrictions on selling XRP to U.S. institutions.
In a surprising turn, the SEC issued an apology for mischaracterizing XRP, sparking questions about the agencyās regulatory approach. Rippleās victory is viewed as a major positive for the crypto market, with growing optimism about XRPās future prospects.
On the Good Morning Crypto Show, attorney John Deaton, who represented over 75,000 XRP holders, was asked whether a class-action lawsuit could be filed against the SEC for allegedly bringing a false case against Ripple.
Can the SEC Be Held Accountable?
- Deaton explained that suing a government agency like the SEC is challenging. While lawsuits have been filed against the SEC before, they typically encounter significant obstacles. When the issue is negligence or poor regulation, itās generally hard to hold the agency legally responsible. The law doesnāt usually permit suing a regulatory body for simply failing to perform well.
The Role of the Inspector Generalās Investigation
- However, Deaton pointed out that an ongoing investigation by the Inspector General (IG) could change the situation. If the investigation uncovers gross misconduct, such as deliberate deception or abuse of discretion, it could open the door for legal action. For example, claims of regulatory captureāwhere a regulator acts in favor of certain companies at the expense of othersāmight be explored. Still, Deaton emphasized that the road to such a lawsuit is difficult and would depend heavily on the findings of the IG report.
Source - coinpedia.org
