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Over 70k XRP holders join class action lawsuit against SEC Over 70k XRP holders join class action lawsuit against SEC

Over 70k XRP holders join class action lawsuit against SEC

Deaton believes SEC’s decision to file a lawsuit against Ripple and its executives for violation of securities law has affected the value of XRP.

Over 70k XRP holders join class action lawsuit against SEC

Cover art/illustration via CryptoSlate

Over 70,000 Ripple (XRP) holders have joined John Deaton’s class action lawsuit against the U.S. Securities and Exchange Commission (SEC).

According to Deaton, the SEC’s decision to file a lawsuit against Ripple and its executives for violation of securities law has affected the value of XRP, thereby causing financial damage to the asset’s investors.

In his opinion, the impact of the SEC lawsuit on XRP is enough to cause 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?”

Meanwhile, Deaton, in an August 8 tweet, said Stellar Lumens (XLM) should also be classified as a security according to the SEC’s definition. According to him, “XLM was born from XRP,” and it has “the same founder.”

Update on Ripple vs. SEC

Meanwhile, the case between SEC and Ripple has continued and the commission has been accused of using “delay tactics.”

Crypto attorney James Filan accused the SEC of wasting the court’s time after the commission submitted a one-line response to the court saying it takes no position on Ripple’s request to reopen fact discovery.

The judge had earlier ordered that the commission authenticate certain videos Ripple presented containing SEC officials’ remarks.

Ripple had requested permission to serve subpoenas to the platforms holding the videos. But the SEC misinterpreted this as a request to reopen discovery which it is not.

Filan said:

“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.”